SHIBJPY Market Overview: Bearish Momentum Gains Clarity Ahead of Key Support

Summary
• SHIBJPY traded in a tight range overnight but broke lower on increased volume just before Asian hours.
• Price action showed a bearish engulfing pattern at 0.001148, confirming a reversal.
• RSI and MACD signaled weakening momentum with no signs of overbought levels.
• Volatility expanded through the late afternoon and early evening, with price moving below the 20-period MA.
• Bollinger Bands widened as bearish pressure increased, signaling higher uncertainty.

Shiba Inu/Yen (SHIBJPY) opened at 0.001149 on 2025-12-22 at 12:00 ET, reached a high of 0.001149, dipped to a low of 0.00111, and closed at 0.001116 at 12:00 ET on 2025-12-23. Total volume was 566.8 million, and notional turnover totaled approximately 631,030 JPY.

Structure and Key Levels

Price action over the past 24 hours revealed multiple key support and resistance levels. A bearish engulfing pattern formed at 0.001148 following a brief rally, suggesting a reversal. The price subsequently tested and fell below the 20-period moving average, a key short-term indicator. On the daily chart, the 50/100/200 SMA lines appear broadly aligned in a downtrend, reinforcing bearish sentiment.

Volatility and Momentum

Bollinger Bands expanded significantly as price moved lower, indicating rising volatility. RSI declined sharply from over 60 to the mid-30s, signaling weakening bullish momentum. MACD showed a bearish crossover with the signal line, and the histogram turned negative, supporting further downside potential.

Volume and Turnover Analysis

Volume surged late in the day, particularly around the key breakdown at 0.001145, confirming the bearish move. Turnover increased in tandem with price weakness, particularly during the Asian session, where a sharp drop below 0.001143 was supported by high volume.

Forward Outlook

With SHIBJPY approaching the 0.001110 psychological level and Fibonacci retracement targets aligning with this range, traders may watch for a potential bounce or continuation. A break below 0.001110 could invite further downside, but caution is advised due to the risk of short-term volatility and possible long unwinding.