USD/JPY) Back support level Read The caption

SMC trading point update




Technical analysis of USD/JPY pair using a combination of price action, resistance/support levels, and indicators. Here's a breakdown of the idea behind the analysis:


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Chart Breakdown (2H - USD/JPY)

1. Key Zones:

Resistance Level (Yellow Box at Top):

Price has previously been rejected from this zone multiple times.

Recent bearish wicks and aggressive sell-offs are marked by red arrows—showing strong seller interest.


Support Level / Target Point (Bottom Yellow Box):

Price has found strong buying interest around 142.142.

This zone is the anticipated downside target if the bearish scenario plays out.



2. Bearish Bias Justification:

Liquidity Grab / Fakeout (labeled “fug”):

The price briefly broke above the smaller resistance block but quickly reversed.

This "fake breakout" often traps buyers, strengthening the bearish case.


EMA 200 (Blue Line):

Price is currently near or slightly under the 200 EMA (144.553), suggesting a potential rejection area aligning with resistance.


RSI Indicator:

RSI shows divergence and has not confirmed a bullish breakout.

The values (56.77 and 42.82) indicate loss of bullish momentum.



3. Projection (Black Lines):

The black zig-zag lines represent a forecasted drop to the support level.

Suggests a short setup near 144.50–145.00 with targets near 142.14.



Mr SMC Trading point

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Summary:

Bias: Bearish

Entry Zone: Near resistance area (144.50–145.00)

Target: 142.142 (support zone)

Invalidation: Strong break above 145.00 and hold

Confirmation: Rejection from resistance with bearish candle pattern



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