JPY/USD – Clean Rejection from Mini Resistance | Bearish Move

137
🔻 1. Major & Mini Resistance Zones
Mini Resistance Zone: This is a key supply area that aligns with previous highs and recent structure points. As the price approaches this level, it tends to react due to unfilled sell orders and trapped buyers.

The chart shows a rejection from this mini resistance zone — visible through strong bearish candles. This suggests institutional selling pressure has entered the market.

Major Resistance is still untouched above, which becomes a clear invalidation level for any short bias. If price breaks and sustains above it, the bearish idea would be invalidated.

🔄 2. MMC (Mirror Market Concepts) at Work
The MMC idea is clearly illustrated. The price movement after the last major drop is mirrored on the right side:

Strong rally > Formation of lower highs > Resistance retest > Sharp decline

These mirrored behaviors often hint at psychological repetition in the market, driven by trader memory and order placement.

The bearish movement after retesting the mini resistance looks nearly identical to the previous leg on the left — reinforcing the idea that we may see a similar downside structure repeat.

🌀 3. Central Zone Area – Liquidity Trap and Reaction Point
The Central Zone Area is labeled where a previous sharp bounce occurred. This zone is critical for several reasons:

It acted as support multiple times.

It’s also where a liquidity grab occurred — shown with a long wick — before a reversal rally.

In current price action, this zone may again act as a magnet for price, as institutions seek liquidity to fuel further moves. Once price reaches it, expect a temporary bounce or reaction.

📐 4. 50% Fibonacci Retracement Confluence
The projected target sits right on the 50% retracement level of the previous bullish leg.

Institutions frequently target the 50%–61.8% Fibonacci zones to rebalance orders and create continuation moves.

This target zone is marked in purple and is aligned with historical support, adding confluence.

📉 5. Sharp Bearish Reversal from Structure
You can observe a very clear shift in momentum:

The uptrend was broken with a strong bearish engulfing candle.

That move wiped out several minor bullish structures — a sign of structure collapse.

This breakdown, combined with the resistance rejection and MMC mirroring, strongly supports a bearish continuation bias.

📊 6. Previous Targets and Structure Memory
The previous targets and historical swing points are not just annotations — they represent real zones of order flow memory.

When price revisits these levels, you often see reactions (reversals, consolidations, or continuation).

🎯 Trade Plan (Based on Chart):
Bias: Bearish

Entry Zone: After rejection confirmation at mini resistance

Target Zone: 0.00675 area (50% retracement)

Invalidation: Close above 0.00715 (Major Resistance)

✅ Conclusion:
This JPY/USD 4H chart beautifully showcases the power of technical structure, Mirror Market Concepts, and liquidity-focused trading. With a clean rejection from mini resistance, a history of mirrored bearish setups, and a confluence target at the 50% zone, this chart suggests a high-probability short opportunity for disciplined traders.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.