Technical Analysis: USD/JPY – Double Bottom Reversal Formation
Pair: USD/JPY
Timeframe: 30-Minute (M30)
Date: May 7, 2025
Pattern: Double Bottom – Bullish Reversal Pattern
📈 Market Structure Overview
The USD/JPY pair has recently shifted from a short-term downtrend into a potential bullish reversal phase, evidenced by the appearance of a double bottom structure at a significant support level.
🟩 1. Pattern Recognition – Double Bottom
First Bottom (Bottom 1): Price declines sharply and finds support at the 141.89 level. Buyers begin to enter the market.
Pullback: Price retraces upward, testing a minor resistance zone but fails to sustain above it.
Second Bottom (Bottom 2): Price returns to retest the 141.89 support, but this time with reduced bearish momentum, showing signs of seller exhaustion.
Support Holds: The support zone holds firmly, and buyers push price higher again, confirming the "W"-shaped reversal pattern.
📏 2. Neckline Breakout
The neckline resistance was formed at 143.677, acting as a confirmation trigger level.
After the second bottom, the price breaks above this neckline on strong bullish momentum, confirming the double bottom pattern.
🔁 3. Retest & Bullish Continuation
After breaking the neckline, price pulls back slightly toward the neckline zone.
This retest of the neckline (previous resistance turned into support) is a textbook bullish confirmation.
Buyers re-enter at this level, and price resumes upward momentum.
🎯 4. Trade Setup
Component Level
Entry After breakout & retest above 143.00
Take Profit 144.201 (based on measured move and recent resistance zone)
Stop Loss 141.890 (below double bottom support)
Rationale:
Target level aligns with recent swing highs and expected measured move from the bottom to neckline.
SL placed safely below structure to reduce risk of false breakouts.
Risk-to-Reward Ratio: Approximately 1:2 (favorable)
🧩 Key Technical Zones
Support Zone: 141.890
Resistance Zone / Target: 144.201
Breakout Zone: 143.677
SL Placement: Below double bottom and consolidation wick support
🔎 Confirmation Factors
Classic double bottom with near-perfect symmetry
Higher low formation
Bullish breakout with strong candles and retest
Resistance flip into support (neckline)
Momentum shift visible on volume and price action
✅ Conclusion
This chart shows a clear bullish reversal opportunity in USD/JPY following a confirmed double bottom pattern. With a break and retest of the neckline, the technicals support a long trade targeting 144.20, while maintaining a well-protected stop below 141.89. The setup reflects a clean structure with strong reward potential and low downside risk.
Pair: USD/JPY
Timeframe: 30-Minute (M30)
Date: May 7, 2025
Pattern: Double Bottom – Bullish Reversal Pattern
📈 Market Structure Overview
The USD/JPY pair has recently shifted from a short-term downtrend into a potential bullish reversal phase, evidenced by the appearance of a double bottom structure at a significant support level.
🟩 1. Pattern Recognition – Double Bottom
First Bottom (Bottom 1): Price declines sharply and finds support at the 141.89 level. Buyers begin to enter the market.
Pullback: Price retraces upward, testing a minor resistance zone but fails to sustain above it.
Second Bottom (Bottom 2): Price returns to retest the 141.89 support, but this time with reduced bearish momentum, showing signs of seller exhaustion.
Support Holds: The support zone holds firmly, and buyers push price higher again, confirming the "W"-shaped reversal pattern.
📏 2. Neckline Breakout
The neckline resistance was formed at 143.677, acting as a confirmation trigger level.
After the second bottom, the price breaks above this neckline on strong bullish momentum, confirming the double bottom pattern.
🔁 3. Retest & Bullish Continuation
After breaking the neckline, price pulls back slightly toward the neckline zone.
This retest of the neckline (previous resistance turned into support) is a textbook bullish confirmation.
Buyers re-enter at this level, and price resumes upward momentum.
🎯 4. Trade Setup
Component Level
Entry After breakout & retest above 143.00
Take Profit 144.201 (based on measured move and recent resistance zone)
Stop Loss 141.890 (below double bottom support)
Rationale:
Target level aligns with recent swing highs and expected measured move from the bottom to neckline.
SL placed safely below structure to reduce risk of false breakouts.
Risk-to-Reward Ratio: Approximately 1:2 (favorable)
🧩 Key Technical Zones
Support Zone: 141.890
Resistance Zone / Target: 144.201
Breakout Zone: 143.677
SL Placement: Below double bottom and consolidation wick support
🔎 Confirmation Factors
Classic double bottom with near-perfect symmetry
Higher low formation
Bullish breakout with strong candles and retest
Resistance flip into support (neckline)
Momentum shift visible on volume and price action
✅ Conclusion
This chart shows a clear bullish reversal opportunity in USD/JPY following a confirmed double bottom pattern. With a break and retest of the neckline, the technicals support a long trade targeting 144.20, while maintaining a well-protected stop below 141.89. The setup reflects a clean structure with strong reward potential and low downside risk.
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Penafian
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Penerbitan berkaitan
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.