USD/JPY) bearish Trand 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 1-hour timeframe. Here's a clear breakdown of the idea presented:


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Overview of the Setup

Current Price: 144.620

EMA 200 (Blue Line): 144.973 – price is trading below the EMA, indicating bearish momentum.

Resistance Zone: Around 145.000 – 145.500

Support/Target Zone: Around 142.799

RSI Indicator: ~51.11 – neutral zone (not overbought or oversold)



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Interpretation of Chart Structure

1. Resistance Level:

Price tested the resistance zone and sharply rejected it.

This zone has held multiple times historically, making it strong.



2. EMA 200 as Resistance:

Price rejected just under the EMA, further confirming downside pressure.



3. Bearish Flag / Rising Wedge Breakdown:

There is a visible bearish continuation pattern (likely a rising wedge or bear flag).

Price is projected to break down from this pattern, continuing the downtrend.



4. Measured Move Projection:

Previous drop of ~230 pips (-1.5%) is mirrored for the next expected move.

The same size move projects the price to reach the target zone around 142.799.



5. Support/Target Zone:

Marked as the final take-profit zone.

Corresponds with historical demand and likely buyer interest.





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Trade Idea Summary

Bias: Bearish

Entry Idea: After breakdown confirmation below wedge structure or rejection from resistance zone.

Target: 142.799

Stop-Loss Consideration: Above the resistance zone (~145.500) or just above the recent swing high.

Confirmation: Breakdown of rising wedge + below EMA + repeated resistance rejections.



Mr SMC Trading point

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Key Considerations

Upcoming News Events (Three Icons):

These symbols signal potential USD or JPY volatility, so watch out for data releases that could disrupt the pattern.


RSI Neutral:

RSI is not yet oversold, allowing room for more downside before hitting exhaustion levels.


False Breakouts Possible:

Price may fake a break upward before continuing lower – wait for strong candle confirmation if entering a trade.




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