USD/JPY) bearish Technical Analysis Read The caption

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SMC trading point update





Technical analysis of USD/JPY (U.S. Dollar vs. Japanese Yen) on the 4-hour timeframe. Here's a breakdown of the analysis:


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Trend & Price Action

The chart shows a descending trendline connecting recent lower highs, indicating a downtrend.

Current price: 143.548

Price has recently rejected off the trendline and started to fall, suggesting continued bearish momentum.

A red arrow marks the rejection point, emphasizing a key resistance area.



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Technical Indicators

EMA 200 (Exponential Moving Average): At 144.459 — the price is currently below the EMA, reinforcing the bearish outlook.

RSI (Relative Strength Index):

RSI (14) values: around 35.45, which is near the oversold threshold (30) but not quite there yet.

Indicates increasing bearish momentum but no reversal signal yet.




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Support Levels Identified

1. Support Level (Target 1): ~142.280

First target point for bears. Likely to see some reaction or consolidation here.



2. Big Support Level (Target 2): ~140.382

A stronger, more significant support zone and a deeper bearish target if the first support breaks.





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Bearish Target Scenario

The projected path (in black lines) suggests:

A further drop into the 142.280 zone.

If that breaks, a continuation toward the 140.382 level.


This suggests a swing trade setup favoring short positions if the price respects the current rejection zone.



Mr SMC Trading point
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Conclusion

Bias: Bearish

Resistance Confirmed: Rejection from descending trendline and below EMA200.

Bearish Targets:

Short-term: 142.280

Medium-term: 140.382


Risk Management: Watch RSI for potential bullish divergence near the second support zone, which could indicate reversal or consolidation.



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