USD/JPY stays capped below 20-EMA

USD/JPY still below 159.50.!The bears maintain control while the price holds under resistance. Loss of 158.90 may trigger fresh selling.

Overview: USD/JPY consolidation continues, steadily reclaiming lost ground from the recent US bond intervention. Although weak positive momentum holds a footing near 159.00, the 20-day EMA and the nearby resistance at 159.50 continue to cap upside pressure, suggesting downside risk persists.

Momentum: Both the RSI and stochastic oscillator warrant some caution as the former is flat below its 50 neutral mark and the latter is approaching its 80 overbought threshold.

Bearish scenario: A slip below 158.90 could initially retest the 158.50 constraining zone ahead of the 200-day EMA near 157.90. Additional declines below 157.00 could expose the market to faster declines.

Risk: A close above the 50% Fibonacci at 159.50 invalidates the immediate bearish bias.

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