USD/JPY H1 - analysis (26/9/2025)

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USD/JPY H1 - analysis (26/9/2025)JAPANESE YEN / U.S. DOLLARFX_IDC:JPYUSDHenrybillion1. Overall Trend The chart shows a strong downtrend. Lower highs and lower lows (marked by red arrows) confirm sustained selling pressure. The current corrective bounce is a potential opportunity to sell at resistance. 2. Entry Zone SELL Entry: 0.006678 – 0.006694 (green box on the chart) This area aligns with EMA20/short-term resistance—ideal for trend-following shorts. Confirm entry with a reversal candle or RSI > 70 signal. 3. Stop-loss (SL) SL: above 0.006694 (top of the green zone) Limits risk if the price breaks the short-term resistance. Matches the recent swing high before the downtrend continuation. 4. Take-profit (TP) TP: 0.006637 – 0.006630 (red zone at the bottom) Matches strong support and the recent swing low. Risk-reward ratio ~1:2 vs SL, suitable for disciplined risk management. 5. Trading Plan Wait for price to retrace into the 0.006678 – 0.006694 zone. Confirm reversal with candle pattern or RSI/EMA signals. Enter SELL with SL = 0.006694, TP = 0.006637. Keep risk at 1–2% of trading capital per trade. Insight: The market remains in a strong downtrend, so selling with the trend is higher probability than attempting to catch the bottom. The bounce to resistance offers a high-probability setup.