USDJPY — Is This the Start of a Larger Downtrend?USD/JPYOANDA:USDJPYYong726Market Structure USDJPY has shifted from a bullish structure into a bearish correction after breaking decisively below several key support levels. The recent sell-off erased the previous sequence of higher lows, indicating that sellers have gained near-term control. Although price is attempting to stabilize after the sharp decline, the overall structure remains weak unless buyers can reclaim the recent breakdown zone. Market Sentiment - Moderately Bearish The strong downside momentum has significantly weakened bullish sentiment. While short-term oversold conditions may trigger technical rebounds, the broader market currently favors sellers until price recovers above key resistance. Bullish Scenario If buyers continue defending the 155.80 area and push price back above 156.50, a broader recovery could develop. A sustained move above 157.00 would suggest that bearish momentum is fading and could open the way toward the previous support zone around 157.80. Bearish Scenario If price fails to hold above 155.80, selling pressure may resume toward 155.30. A decisive break below that level would reinforce the current bearish structure and increase the probability of another leg lower. ──────────────────── Market Outlook The recent decline represents a significant change in short-term market structure. Although buyers have attempted to stabilize the market after the sharp sell-off, the recovery remains limited while price stays below former support levels. The next directional move will likely depend on whether buyers can reclaim nearby resistance or sellers continue defending the breakdown area. ──────────────────── Key Levels First Resistance 156.50 Second Resistance 157.00 First Support 155.80 Second Support 155.30 ──────────────────── Future Scenarios A sustained recovery above 156.50 would indicate that buyers are gradually regaining confidence and could drive price toward 157.00 and potentially 157.80. However, if price breaks below 155.80 again, bearish momentum could accelerate toward 155.30, extending the current corrective move. ──────────────────── Event Risk USDJPY remains highly sensitive to monetary policy expectations in both the United States and Japan. Traders will continue monitoring Federal Reserve policy expectations, Bank of Japan communication, U.S. labor market data, inflation releases, Treasury yields, and overall risk sentiment. Any changes in interest-rate expectations or central bank guidance could generate significant volatility. Ultimately, price reaction matters more than the headlines. If buyers cannot reclaim 156.50–157.00, sellers are likely to remain in control. Conversely, if 155.80–155.30 continues to hold despite negative news, a stronger recovery could gradually develop. ──────────────────── Please share your view below: Do you expect USDJPY to recover after this sharp decline, or is the broader bearish correction only getting started? More market structure and key level updates will be shared regularly.