USD/JPY is trading at 156.96 (+0.13%) as of October 23, 2026, during the European session, with a daily range of 156.07 – 157.16. The pair's current level is below both the 20-day and 50-day simple moving averages at 157.93 and 157.60, respectively, indicating an ongoing downtrend. The Relative Strength Index (RSI) stands at 41.6, suggesting the pair is in neutral territory, not yet oversold. The Average True Range (ATR) of 0.85 indicates moderate daily volatility.

The current price action is contained within a narrow range relative to the ATR, with the pair having closed slightly higher than the previous day at 156.76. Key technical levels to watch include the pivot at 157.69, with resistance at R1: 158.68 and support at S1: 157.14. The market may be underpricing the potential for a further decline given the downtrend indicated by the moving averages.

A break below the S1 support level at 157.14 could signal further downside momentum, potentially targeting the lower end of the 52-week range at 153.42. Conversely, a move above the pivot at 157.69 could indicate a short-term reversal. The next catalyst for USD/JPY will be a break or rejection at these key levels, with a close below 157.14 or above 157.69 providing direction for the near-term trend.