The USD/JPY pair has shown signs of exhaustion near a key resistance zone, presenting a potential short opportunity.
Key Observations:
Resistance Zone: Price recently tested the 146.727–146.762 zone, which has historically acted as strong resistance. It failed to break above this level, suggesting potential downside pressure.
Entry Level: We've marked 144.950 as a potential entry point for a short position, as price begins to retrace after rejection from resistance.
Bearish Structure: The recent lower high formation, combined with a series of bearish candles, supports the case for a downward move.
Target Zone: The target is set at the 140.000–140.188 zone, aligning with previous support and providing a solid risk-to-reward ratio.
Risk Management: Always manage your risk accordingly. The invalidation of this setup would occur if the price breaks and holds above the 146.762 resistance level.
Trade Plan Summary:
Entry: 144.950
Target: 140.000 – 140.188
Stop-loss: Above 146.762 (resistance zone)
This idea is based on technical analysis and is intended for educational purposes. Be sure to evaluate the trade according to your own trading plan and risk tolerance.
If you find this analysis helpful, don’t forget to like and share your thoughts in the comments below!
Key Observations:
Resistance Zone: Price recently tested the 146.727–146.762 zone, which has historically acted as strong resistance. It failed to break above this level, suggesting potential downside pressure.
Entry Level: We've marked 144.950 as a potential entry point for a short position, as price begins to retrace after rejection from resistance.
Bearish Structure: The recent lower high formation, combined with a series of bearish candles, supports the case for a downward move.
Target Zone: The target is set at the 140.000–140.188 zone, aligning with previous support and providing a solid risk-to-reward ratio.
Risk Management: Always manage your risk accordingly. The invalidation of this setup would occur if the price breaks and holds above the 146.762 resistance level.
Trade Plan Summary:
Entry: 144.950
Target: 140.000 – 140.188
Stop-loss: Above 146.762 (resistance zone)
This idea is based on technical analysis and is intended for educational purposes. Be sure to evaluate the trade according to your own trading plan and risk tolerance.
If you find this analysis helpful, don’t forget to like and share your thoughts in the comments below!
Trade active
150 pips hold. guys. confirm target 
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Related publications
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.