JPY/USD – Bearish Channel Continuation SetupThe chart shows a descending channel (highlighted in pink), indicating a continuing downtrend.
Price is currently near the lower boundary of the channel, suggesting possible short-term support before another potential move downward.
📉 Trade Setup Breakdown
Entry Point: 0.006820
Stop Loss: 0.006913
Target Point: 0.006465
This represents a sell (short) setup after a potential pullback.
⚙️ Scenario Explanation
Pullback Phase:
Price is expected to rebound upward from the lower boundary of the descending channel toward the support-turned-resistance zone (blue box).
Rejection Zone:
The blue highlighted zone around 0.006820 – 0.006913 is marked as a resistance/supply zone, where sellers are expected to regain control.
Target Zone:
The target near 0.006465 aligns with the lower boundary of the channel, confirming continuation of the bearish trend.
📊 Risk–Reward Ratio
Approx. R:R = 1:3, which is a strong setup (risk ≈ 0.000093, reward ≈ 0.000355).
🔍 Technical Summary
Trend: Bearish
Structure: Descending channel
Bias: Sell on retracement
Confirmation Needed: Bearish candle formation or rejection near 0.006820 zone.
