"USD/JPY Reversal Setup at Key Support Level – Breakout or Break

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Technical analysis of USD/JPY (U.S. Dollar / Japanese Yen) chart, showing a recent downtrend with some key technical elements marked. Here's the breakdown:


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📊 Chart Analysis

Trend

The pair has been in a downtrend, confirmed by the lower highs and lower lows.

Both the 50 EMA (red line) and 200 EMA (blue line) are trending downward, indicating bearish momentum.



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🔍 Key Technical Features

1. Support Level

The horizontal blue lines marked as "support level" indicate a strong support zone around 142.000.

Price has tested this support multiple times, showing it’s a significant area of interest.


2. Downtrend Line

A descending trendline from the recent high is drawn, showing a clear resistance slope.

A breakout above this line would indicate potential trend reversal or a bullish correction.


3. Entry Point

The "entry point" arrow is suggesting a potential long (buy) trade setup if price breaks above the trendline and confirms above the support.

The expected move targets the previous high (~146.000) — likely the measured move or resistance target.


4. Red Down Arrow

Indicates a significant price rejection / peak — possibly a previous supply zone or news-based move.


5. Green Up Arrows

Indicate strong buy interest zones or demand, supporting the idea of a potential bounce.



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✅ Possible Trading Plan (Based on Chart)

Bullish Scenario (Buy):

Entry: On breakout above the descending trendline (around 143.00+).

Target: ~146.000 (previous swing high).

Stop-Loss: Below 142.000 support (safe buffer, e.g., 141.800).


Bearish Scenario (Sell):

If price fails to break above the trendline and closes below 142.000.

Could trigger further downside continuation.




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🧠 Technical Takeaway

This chart shows a potential reversal setup from a strong support area. A break above the descending trendline with confirmation could give a buy signal toward the previous high. However, failure at this level could lead to a continuation of the bearish trend.





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