USDJPY: Selling Pressure Builds as Downtrend Extends

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USDJPY: Selling Pressure Builds as Downtrend ExtendsUSD/JPYOANDA:USDJPYDomicChainaUSDJPY has lost an important support area following a sharp decline accompanied by a significant increase in volume. The simultaneous break below the EMA34 and EMA89 shows that buyers are no longer maintaining their previous advantage, while sellers are regaining control of the short-term structure. From a fundamental perspective, the Japanese yen has benefited from stronger demand for safe-haven assets. At the same time, weaker US Treasury yields have reduced the appeal of the US Dollar. Markets are also becoming more cautious ahead of major US economic releases, increasing profit-taking pressure on USDJPY. On the H4 chart, the breakdown below 161.75 confirms a bearish reversal signal after several sessions of consolidation. If price remains below the EMA89 and fails to reclaim the broken level quickly, the decline could extend toward 160.80, which represents the next important support area.