USD/JPY – Potential Short Setup Near Intraday Resistance

The USD/JPY pair is showing early signs of weakness after a limited rebound, with price currently testing the 0.00650 resistance area on the H1 timeframe. This zone coincides with a short-term supply region and aligns closely with the 9-period EMA, suggesting a potential pullback setup.

Key Technical Zones
Immediate resistance: 0.00650 – 0.00652
Major resistances: 0.00656 and 0.00660
Support zone: 0.00647 – 0.00646

Technical Outlook
Price structure remains bearish overall, forming lower highs and lower lows since last week.
The minor bullish correction appears to be losing momentum as candles reject near the dynamic EMA and prior structure high.
If sellers defend the 0.00650–0.00652 zone successfully, a move toward 0.00647 or even deeper into 0.00644 is likely.

Trading Plan
Sell zone: 0.00650 – 0.00652
Stop loss: Above 0.00653
Take profit: 0.00647 – 0.00644
Invalidation: A confirmed breakout and retest above 0.00653 may shift the bias back to short-term bullish, targeting 0.00656–0.00660.

The pair remains in a corrective phase, and momentum indicators continue to favor sellers while below resistance. Traders should watch for confirmation via bearish engulfing or rejection wicks before entering.
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