USD/JPY Bearish Rejection at Key Resistance Targeting 142.40

Technical analysis for USD/JPY on the 1-hour timeframe. Here’s a breakdown of the idea and the reasoning behind it:


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🔍 Technical Breakdown

1. Resistance Zone (Red Arrows):

Price has rejected the 145.50 resistance zone multiple times, creating a strong horizontal resistance level.

This rejection suggests that sellers are defending this zone aggressively.


2. Current Price Action:

A bear flag or wedge pattern is forming after a minor upward correction, suggesting a potential continuation to the downside.

Price is below the 200 EMA (144.08), and just around the 50 EMA (143.94), hinting at bearish bias.


3. Support Level:

Clear horizontal support is marked around 142.40, which acts as the target point.

If price breaks the flag/wedge to the downside, a move toward this level is expected.


4. RSI Indicator:

RSI (14) is around 55–57, slightly bullish but still neutral.

No overbought condition, so there's room for a drop.



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📉 Forecasted Move

Short-Term Bullish Bounce: Price may spike toward the resistance again (~145.50), offering a short entry opportunity.

Main Idea: A rejection from the resistance level would likely trigger a drop back toward the target at 142.409, a potential 2.09% downside.



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🧠 Trading Idea Summary

Bias: Bearish

Entry Idea: Near resistance zone (145.00–145.50), once rejection is confirmed.

Target: 142.409 support

Stop-Loss: Above resistance (~145.70 or higher)

Confirmation: Breakdown from the flag/wedge and rejection from resistance



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