USD/JPY: Consolidating Below Key Resistance – A Short Setup Emerges

Technical Outlook and Price Action Analysis

The USD/JPY pair is currently exhibiting a sideways trend, trading around 149.19. Observing the recent price action, it is evident that the market has found significant resistance at the 149.65 level, which also marked the upper bound of yesterday's trading range at 149.65. This persistent rejection at the top of the day range suggests that buyers are struggling to push prices higher, indicating a potential exhaustion in upward momentum.
My technical assessment points to a retest of this resistance area before a potential move lower. The current 24-hour change of -0.31 (-0.21%) further reinforces the idea of selling pressure entering the market. For a position trade, I am looking for a move back towards the 149.3 entry point, anticipating that this level will act as a retest of the breakdown or a final area of overhead supply before a deeper retracement.

Fundamental