USD/JPY Bearish Setup: Anticipating Rejection at Resistance

Hello traders! Today, I’m taking a closer look at the USD/JPY pair on the 1-hour time frame, where I’m anticipating a potential bearish move.

Here’s my plan:

Resistance Level: a key zone where it has previously reversed. If the price tests this level again, I’ll be watching for a potential rejection.

Reversal Signals: I’ll be paying close attention to bearish candlestick patterns, such as shooting stars or bearish engulfing patterns, to confirm that the resistance is holding and selling pressure is building.

Momentum Check: I’ll also monitor the overall market momentum. If the upward movement starts losing steam near the resistance, this could be an early sign of a potential reversal.

Risk Management Strategy: To manage my risk, I’ll place a stop loss slightly above the resistance level, protecting against a potential breakout.