According to technical analysis, the U.S. dollar against the Japanese yen is exhibiting signs of a bearish reversal, as noted by Matt Simpson of StoneX. The senior market analyst observed that momentum for the currency pair weakened significantly on Tuesday, completing a three-day bearish reversal pattern known as an "evening star." Simpson indicated that the four-hour chart shows the pair consolidating within a potential flag formation, suggesting a possible downside breakout toward the monthly pivot point of 158.38 yen. He added that a break below this level would bring the weekly pivot point of 158.08 yen and the 158-yen mark into focus.
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