Bearish on USDJPYThe recent price action shows a push towards a resistance zone, indicating potential exhaustion or a reversal point.
The shaded area marks a significant resistance zone around the 157.700 - 158.000 levels. This zone has been tested multiple times and has held as a strong supply area.
Immediate support can be identified around the 156.500 level, which aligns with previous swing lows and a possible demand zone.
A stronger support level is around 155.500, a psychological round number that has acted as a base for previous price reversals.
Below the 156.500 support level, there may be sell-side liquidity, where sell stops from long positions could be resting.
The resistance area (157.700 - 158.000) is a supply zone, where significant selling interest could push the price lower.
A notable fair value gap (FVG) or imbalance between 155.500 and 157.000 from previous price movements suggests potential areas for price retracement.
Entry: Consider entering a short position around the 157.700 - 158.000 resistance zone.
Stop Loss: Place the stop loss slightly above the resistance zone, around 158.200, to account for potential liquidity grabs.
Take Profit: Aim to take profits around the immediate support at 156.500 and a more extended target around the 155.500 level, aligning with the demand zone and previous lows.
