TRXJPY Drops by 64.64% Within 24 Hours as Market Experiences Intense Short-Term Fluctuations

On September 6, 2025, TRXJPY experienced a dramatic 64.64% drop within a single day, falling to $48.82—one of the largest one-day losses in its recent performance. This steep decline followed a 7-day fall of 818.4% and a monthly decrease of 820.23%, highlighting a persistent downward trend in spite of a 1132.3% gain over the previous year. The recent price swings point to increased market sensitivity to sentiment shifts and technical factors.

The TRXJPY trading pair recently broke through major support zones, with price movements confirming a slide beneath important moving averages. This development has intensified bearish momentum and triggered stop-losses, adding to the selling pressure. Experts suggest the abrupt sell-off is the result of investors locking in gains from last year’s rally and making adjustments in cross-currency positions. Although no direct macroeconomic drivers have been reported, the scale of the fall signals a notable change in market dynamics.

Technically, the sharp 24-hour decline corresponds with a breakout downward from a critical consolidation phase, indicating the continuation of the bearish trend. Both the RSI and MACD have dropped into oversold regions, pointing to a possible short-term stabilization. Nevertheless, the lack of bullish signals in recent candlestick patterns shows that selling momentum remains dominant. Analysts anticipate the next key support is close to $40, and a drop below this threshold could accelerate the downtrend.

Backtest Hypothesis

A suggested backtesting approach uses technical signals and price movement patterns observed during the recent breakdown. The method involves both 50-period and 200-period moving averages, focusing on divergences in RSI and MACD to spot possible reversal points. A sell order is activated when the price settles below the 50-period moving average after a prolonged rally, with RSI verifying a bearish divergence. The trade entry occurs on the next bar after the crossover, setting a stop-loss at the latest swing high. The profit target is identified at the closest major support level. Applied to recent conditions, this strategy might have detected the breakdown early, helping to reduce losses amid the steep decline.