USD/JPY is trading at 157.16 (+0.19%) as of October 26, 2026, during the European session, with a daily range of 156.65 – 157.22. The pair's current level is below both the 20-day and 50-day simple moving averages, at 157.89 and 157.55 respectively, indicating a prevailing downtrend. The Relative Strength Index (RSI) stands at 42.7, remaining in neutral territory, suggesting that the currency pair is not in oversold or overbought conditions. The Average True Range (ATR) of 0.86 indicates moderate daily volatility.

The pivot level for the day is 156.58, with the first resistance level (R1) at 157.06, which the pair has already surpassed, and the first support level (S1) at 156.01. Given that the rate is above the pivot and has touched R1, a potential test of higher levels could be on the cards if the upward momentum continues. However, being below the SMAs suggests that the broader trend remains bearish.

The market may be underpricing the potential for further downside given the downtrend indicated by the moving averages. A break below S1 at 156.01 could signal further selling pressure. The next catalyst for USD/JPY will be the US economic data releases scheduled for later in the week, which could either validate or invalidate the current downtrend, potentially shifting the market's direction.