USDJPY Bearish Continuation Setup Trend Analysis
The market is in a clear downtrend, evidenced by the sequence of lower highs and lower lows.
The descending trendline has been respected multiple times, acting as dynamic resistance.
🧠 Key Technical Factors
Rejection Zone (Supply Area):
The marked “Rejection Point” aligns with the confluence of the trendline resistance, 50 EMA (red), and historical supply.
Price attempted to break above but faced a strong rejection—signaling institutional sell interest.
EMA Confluence:
50 EMA (142.993) and 200 EMA (144.063) are both sloping downward.
Price is trading below both EMAs, confirming bearish momentum and trend continuation bias.
BOS (Break of Structure):
Multiple BOS levels marked, showing a consistent pattern of structure breaks to the downside.
Each rally is met with selling pressure, failing to create new highs.
🧩 Projected Price Action
Current retracement could retest the trendline/50 EMA before a potential continuation move downward.
Expectation is a lower high formation near the descending trendline followed by a bearish impulse.
🏹 Bias: Bearish
Traders might consider short opportunities around the 142.90–143.00 zone, targeting 142.00 and below, with stops just above the trendline/supply zone.
⚠️ Risk Note
A clean break and close above the trendline and 50 EMA would invalidate this setup and could lead to a shift in structure.
