Let's take a deep dive into the JPY/USD price action and technical setup on the daily chart. The market has presented us with a falling wedge breakout, a strong bullish reversal signal. This pattern indicates a potential shift from the previous downtrend into an uptrend.
1️⃣ Falling Wedge Pattern – Bullish Reversal Signal
The falling wedge is a classic bullish reversal pattern. It forms when price action makes lower highs and lower lows within two converging trendlines. The key characteristic of this pattern is the decreasing selling pressure, leading to a breakout to the upside.
We observed a clear breakout from the wedge, indicating bullish momentum.
Buyers have stepped in strongly, pushing prices above the resistance zone.
This signals a potential trend reversal from bearish to bullish.
2️⃣ Breakout Confirmation & Key Levels
Once the price broke above the wedge, it faced a crucial resistance zone (marked in blue on the chart). After breaking this level, it has now turned into support—a strong technical confirmation.
Resistance Turned Support: The previous resistance is now acting as support, giving further confidence in the bullish move.
Retest Expected: After breakouts, the price often comes back to retest support before continuing higher. If it holds, it’s a good entry opportunity.
3️⃣ Entry, Stop Loss & Take Profit Targets
Based on the technical setup, here’s how we can approach this trade:
🔹 Entry: Ideal entry is around the current support zone after a successful retest.
🔹 Stop Loss: Placed below the support level at 0.006574 to minimize risk.
🔹 Take Profit (TP): The target price is set at 0.007126, aligning with the previous swing high.
4️⃣ Trade Outlook & Expected Movement
If the price holds above support, we expect a bullish continuation towards the target.
A minor pullback is possible before the next move higher.
If the price breaks below the support zone, it may invalidate the bullish setup.
📌 Final Thoughts
This setup is a high-probability bullish trade, backed by the falling wedge breakout and retest of a key level. However, always manage risk properly and wait for confirmation before entering the trade.
What do you think? Do you see further upside, or is this a false breakout? Drop your thoughts below! 👇
#JPYUSD #ForexTrading #TechnicalAnalysis #TradingView #BullishBreakout #ChartPatterns
1️⃣ Falling Wedge Pattern – Bullish Reversal Signal
The falling wedge is a classic bullish reversal pattern. It forms when price action makes lower highs and lower lows within two converging trendlines. The key characteristic of this pattern is the decreasing selling pressure, leading to a breakout to the upside.
We observed a clear breakout from the wedge, indicating bullish momentum.
Buyers have stepped in strongly, pushing prices above the resistance zone.
This signals a potential trend reversal from bearish to bullish.
2️⃣ Breakout Confirmation & Key Levels
Once the price broke above the wedge, it faced a crucial resistance zone (marked in blue on the chart). After breaking this level, it has now turned into support—a strong technical confirmation.
Resistance Turned Support: The previous resistance is now acting as support, giving further confidence in the bullish move.
Retest Expected: After breakouts, the price often comes back to retest support before continuing higher. If it holds, it’s a good entry opportunity.
3️⃣ Entry, Stop Loss & Take Profit Targets
Based on the technical setup, here’s how we can approach this trade:
🔹 Entry: Ideal entry is around the current support zone after a successful retest.
🔹 Stop Loss: Placed below the support level at 0.006574 to minimize risk.
🔹 Take Profit (TP): The target price is set at 0.007126, aligning with the previous swing high.
4️⃣ Trade Outlook & Expected Movement
If the price holds above support, we expect a bullish continuation towards the target.
A minor pullback is possible before the next move higher.
If the price breaks below the support zone, it may invalidate the bullish setup.
📌 Final Thoughts
This setup is a high-probability bullish trade, backed by the falling wedge breakout and retest of a key level. However, always manage risk properly and wait for confirmation before entering the trade.
What do you think? Do you see further upside, or is this a false breakout? Drop your thoughts below! 👇
#JPYUSD #ForexTrading #TechnicalAnalysis #TradingView #BullishBreakout #ChartPatterns
For Daily Trade Setups and Forecast: 📈 t.me/xauusdoptimizer
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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.
For Daily Trade Setups and Forecast: 📈 t.me/xauusdoptimizer
Premium Signals Fr33: 💯 t.me/xauusdoptimizer
🥰🥳🤩
Premium Signals Fr33: 💯 t.me/xauusdoptimizer
🥰🥳🤩
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.