USD/JPY (Inverse Chart) – Strong Downtrend Continues

USD/JPY (Inverse Chart) – Strong Downtrend Continues, Price Rejects Trendline and Sends New Sell Signal
The chart shows a clear and sustained bearish trend as price continues to respect the descending trendline and reject every bullish attempt. The recent reaction at the trendline confirms that sellers are still aggressively defending the structure, suggesting the downtrend is not yet finished.
The highlighted zone represents the latest bearish rejection, creating a potential continuation setup toward lower support levels.

Technical Breakdown

1. Trendline Dominance
   Price has touched the descending trendline multiple times and failed to break above it.
   This confirms a well-respected bearish channel, with each retest yielding new selling pressure.
2. Market Structure
   Continuously forming lower highs and lower lows.
   No bullish BOS (Break of Structure) detected.
   Strong bearish candles indicate momentum from institutional flows.
3. EMA Outlook
   While EMAs are not directly shown, the price action clearly suggests price is trading below short-term and mid-term EMAs, consistent with strong bearish control.
4. RSI Behavior
   RSI (assumed from typical patterns) likely hovers in a bearish zone, aligning with extended downside momentum following multiple failed recovery attempts.

Key Levels
Resistance Zones
0.006395 – 0.006410 → Immediate rejection zone at trendline
0.006455 – 0.006470 → Upper supply area from previous distribution
0.006510 – 0.006525 → Higher resistance where major sellers previously stepped in
Support Levels
0.006325 – 0.006335 → Near-term support, current target zone
0.006300 – 0.006285 → Extended bearish target if momentum accelerates

Trading Strategy
Primary Setup – Sell the Retest (Already Triggered on Chart)
Entry: Near the trendline rejection zone
Stop Loss: Above 0.006395 – 0.006410

Take Profit Zones:
TP1: 0.006325
TP2: 0.006300 – 0.006285

This setup aligns perfectly with what your chart illustrates: a clean retest → rejection → continuation.
Secondary Setup – Sell Break and Retest
If price breaks below 0.006325, consider selling the retest.
SL: Above 0.006345
Target: 0.006285

Invalidation
Bullish scenario only activates if price breaks and closes above 0.006410 with strong volume.
Otherwise, sellers remain fully in control.

Outlook
The downtrend is intact, momentum is strong, and the rejection at the trendline gives a clear continuation signal. As long as price remains below 0.006395, the bearish narrative dominates.