USD/JPY) bullish trend analysis Read The Chaptian

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SMC Trading point update


Technical analysis of USD/JPY chart shows a bullish reversal setup. Here’s a breakdown behind the analysis:

1. Downtrend & Channel Breakout:

Price was trending downward within a descending channel (marked “channel trend”).

Recently, the price broke out of the channel, signaling a potential trend reversal.


2. Demand Zone (Diamond Zone):

The yellow box labeled “Diamond Zone” represents a demand/support zone where price previously found buyers.

A retest of this zone is expected before the bullish move.


3. EMA (200):

The EMA (200) is currently above the price but close. A break above this level (142.522) could add to bullish momentum.


4. RSI Indicator:

RSI is showing a bounce off a mid-level (~50), suggesting bullish momentum is gaining.


5. Target Level:

The analysis targets 147.838, which aligns with a prior resistance zone.

The move projects a 5.19% gain (~778.5 pips) from the current setup.


Trading Idea Summary:

Entry: Around the “Diamond Zone” after a successful retest.

Confirmation: Watch for bullish candlestick patterns or a break above EMA 200.

Target: 147.838

Stop Loss (implied): Below the Diamond Zone (~140.000)




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