The USD/JPY currency pair has recently reversed downward from a resistance zone situated between the multi-month resistance level of 160.500 and the upper daily Bollinger Band, as clearly illustrated in the daily USD/JPY chart below.
This downward reversal has initiated an active short-term correction, currently labeled as wave IV in the technical analysis framework.
Given the robust resistance at 160.500 and the overbought conditions observed in the daily Stochastic indicator, the USD/JPY pair is projected to decline toward the subsequent support level of 159.00.
