#USDJPY Weekly: Price Reaches a Major Decision Zone!US Dollar vs. Japanese YenFX:USDJPYSetupsfx_🔺USDJPY is trading near 156.20 after a strong rejection from the 162.00–164.00 premium selling region. The weekly chart now presents two credible scenarios: recovery from current support or a deeper correction toward lower liquidity. Neutral Price-Action Overview 🔺From the 2025 low near 140.00, USDJPY developed a sequence of higher highs and higher lows. Several bullish Breaks of Structure (BOS) confirmed that buyers controlled the broader advance. 🔺Price eventually reached the premium area around 162.00 and briefly traded near 164.00 before sellers responded. A premium zone represents the upper portion of a trading range where selling interest may increase, but reaching it does not automatically confirm a reversal. 🔺The subsequent decline has returned price to the rising trend line and previous breakout region near 155.00–156.50. This is an important decision area because it may either support another bullish expansion or give way to a larger correction. Bullish Scenario 🔺The bullish structure could remain valid if the current support region holds and price forms a clear rejection. Confirmation may include: * A bullish weekly rejection candle * A lower-timeframe Change of Character (CHoCH) * A new bullish BOS * Recovery and acceptance above 158.00–160.00 🔺If buyers regain control, the first significant objective would be the 162.00–164.00 resistance region. A sustained weekly close above 164.00 could expose higher levels around 168.00 and eventually 172.00. 🔺Until price reclaims the 158.00–160.00 area, however, bullish continuation remains a possibility rather than a confirmed move. Bearish Scenario 🔺A bearish continuation would become more convincing if USDJPY closes decisively below 155.00–156.00 and then fails to recover that region. 🔺This would indicate that the rising support structure has weakened and that the rejection from the premium zone may be developing into a broader correction. Potential downside objectives include: 1. 152.00–153.00 — previous internal-liquidity and structural area 2. 148.00–150.00 — former consolidation and demand region 3. 144.00 — the broader downside objective shown on the chart 🔺For a higher-quality bearish setup, traders could wait for a confirmed breakdown followed by a retest of the broken support as resistance. Selling directly into support carries the risk of entering just before a recovery. Invalidation Levels For the bullish scenario: 🔺A weekly close below 155.00 would weaken the immediate recovery setup. Continued selling below 152.00 would provide stronger evidence that a deeper correction is underway. For the bearish scenario: 🔺A sustained weekly close above 164.00 would invalidate the current reversal structure and support continuation toward higher price levels. Retail Trader Takeaway 🔺USDJPY is positioned between major resistance around 162.00–164.00 and immediate support near 155.00–156.50. Neither direction is fully confirmed at the current price. 🔺Retail traders should avoid predicting the next move solely from the trend-line test. A recovery above 158.00–160.00 would strengthen the bullish case, while a confirmed weekly breakdown below 155.00 would favour the bearish scenario. 🔺Wait for confirmation, place the stop-loss beyond the structure that supports the trade and adjust position size according to the distance of that stop. Treat each target as a possible reaction area rather than a guaranteed destination. LIKE AND COMMENT❤️ THE SETUPSFX_ TEAM