USD/JPY – Price Pulls Back Into Supply ZoneJAPANESE YEN / U.S. DOLLARFX_IDC:JPYUSDHenrybillionUSD/JPY – Price Pulls Back Into Supply Zone, Bearish Continuation Likely After Retest USD/JPY on the H1 chart continues to respect the prevailing downtrend as price repeatedly rejects the supply zone and fails to break above minor intraday highs. The recent corrective move has pushed price back into a well-defined short-term supply area around 0.006450, where sellers previously regained control. The lower-high structure remains intact, and the market is showing clear signs of a corrective pullback rather than a trend reversal. This fits the typical pattern of a bearish continuation before the next leg down. Key Technical Zones Supply Zones 0.006450 – 0.006460: major intraday supply, where previous impulsive selling originated. 0.006510 – 0.006520: higher-timeframe supply, untouched and still valid. Support Zones 0.006420: first reactive support. 0.006400 – 0.006390: deeper downside target if momentum increases. Price Behavior and Trend Structure The chart highlights several key signals confirming the bearish bias: Lower highs and lower lows: the market is consistently forming a descending structure, confirming trend strength. Pullback into supply: the current move resembles a textbook bearish retest as price steps back into the exact zone where sellers were previously aggressive. Trendline confluence: the pullback aligns with the descending trendline, increasing the probability of another downward move. Weak bullish recovery: candles show hesitation, indicating buyers are lacking momentum. If price fails to break above the supply zone, the next impulse is likely to target deeper liquidity levels. Trading Strategy (Trend-Following Approach) Sell Setup if Price Rejects 0.006450 – 0.006460 TP1: 0.006420 TP2: 0.006400 TP3: 0.006390 SL: above 0.006465 This strategy aligns with the current bearish structure and follows the principle of selling pullbacks into supply. Outlook USD/JPY remains in a controlled downtrend. Unless the market breaks decisively above the immediate supply zone, the bearish continuation scenario remains the most probable. Traders should watch for rejection patterns at the supply area and avoid chasing trades mid-range.