USD/JPY Pair Retracts from 5-Week High, Shows Bearish Pattern

The USD/JPY pair has retreated from its almost five-week high, which was around the 134.60 region earlier on Tuesday. During the mid-European session, the pair continued its steady intraday descent. Spot prices have now fallen below the 134.15 mark in the last hour, which has caused a significant decline in the previous day's gains and put an end to a two-day winning streak.

Our analysis suggests that the USD/JPY pair is still within a Bearish Channel, with the price rebounding from both the upper and lower sides of the dynamic trendline. Furthermore, the trend in the Daily Timeframe remains bearish. Consequently, we anticipate a short impulse towards the lower side of the channel.