USD/JPY has been trading inside a rising channel, but price is currently testing the lower boundary of the channel, which is a critical structural support area. Momentum is weakening and price is starting to lose bullish strength.

Technical observations:

Price breaking down from ascending channel structure

Lower highs forming after recent rejection near the channel top

Price moving below short-term moving averages

Bearish momentum increasing

RSI dropping toward the oversold region, showing strong downside pressure

A confirmed 1H candle close below 156.560 would signal a structural breakdown and likely push price toward the next liquidity zones:

TP1 → 156.090 (first support / intraday demand level)

TP2 → 155.600 (major support and previous consolidation area)

Historically, when price breaks the lower boundary of a rising channel after a distribution phase, continuation toward the next demand zones occurs frequently due to trapped buyers exiting positions.