Greetings, dear traders. If you are looking for trading signals, we have good news for you. We have come up with a USDJPY technical analysis. Let’s delve into the analysis.
USDJPY Trading Signal: Bearish Continuation Expected After Key Break
The USDJPY pair has recently broken through a downward trendline, signaling a potential continuation of the bearish momentum. Traders should watch closely for a confirmed break below the local low of 143.05, which could open the door for further declines.
Trade Idea: Sell USDJPY Below 143.05
We are considering a short position, but only if the price decisively breaks and consolidates below 143.05. This level serves as a critical support, and a confirmed breakdown would strengthen the case for additional downside.
Key Details:
- Entry Trigger: Wait for a clear break and close below 143.05 to confirm bearish conviction.
- Take-Profit Targets:
- TP1: 142.20 (near-term support)
- TP2: 140.08 (next major demand zone)
- Risk Management: Use a stop-loss above the recent swing high to protect against reversals.
Why This USDJPY Setup?
- Trendline Break: The pair has breached a descending trendline, suggesting weakening bullish momentum.
- Lower Low Confirmation: A drop below 143.05 would confirm a bearish structure, increasing downside potential.
- Strategic Targets: The identified TP levels align with historical support zones, offering logical profit-taking points.
Final Thoughts
While the setup favors sellers, patience is key—wait for confirmation before entering. Market sentiment and broader risk trends (e.g., BoJ/Fed policy shifts) should also be monitored.
Do you agree with this analysis? Share your perspective in the comments! 👇
