USD/JPY: Preparing for a Downside Move from Resistance

Market Structure and Technical Analysis

The USD/JPY pair is currently exhibiting a sideways trend, trading at 149.84. We have observed the pair consolidate within a day range of 149.33 to 150.35. This tight range, coupled with the current proximity to the immediate resistance at 150.35, presents a clear technical setup for a potential retracement. My analysis indicates a strong rejection could occur at or around the 150.00 psychological level, which is just beneath the daily high. The structure is clear: price has struggled to decisively break above 150.35, indicating a lack of conviction from buyers at these elevated levels.

Trade Setup and Risk Management

Given this structure, I am