USDJPY Anticipates a Bullish Trend Resumption 

Market Analysis – January 24

In early 2024, the USDJPY pair demonstrated strong bullish momentum, with the 140.700 level acting as a key support zone. This support propelled the pair into a sustained uptrend, marked by the formation of higher highs. By July 2024, the bullish trend culminated in a significant peak at 161.980, establishing a major high for the year

Demand Levels: 149.580, 146.190, 140.700

Supply Levels: 152.800, 157.060, 161.980

After the July peak, USDJPY experienced a substantial bearish correction. This decline saw the price rapidly breach critical demand levels at 149.580 and 146.190. However, upon revisiting the 140.700 support zone, the pair displayed resilience, reversing into a bullish recovery. This recovery led to a break of structure, with the price reclaiming the 149.580 level and advancing beyond the 152.800 supply zone.

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As the bullish momentum pushed the price toward the 157.060 resistance level, the pair encountered a bearish retracement. This retracement found strong support at 149.580, which once again triggered a bullish break of structure. The price slightly breached the 157.060 resistance before facing another bearish pullback. Currently, the daily Moving Average signals bearish momentum as the price remains below the indicator, suggesting a short-term correction phase.

Despite the ongoing bearish pullback, short-term indicators suggest a potential resumption of bullish momentum. The formation of a failed low indicates market reluctance to push the price lower, signaling a possible reversal. Furthermore, the 4-hour Relative Strength Index (RSI) reveals increasing momentum, providing additional confluence for a bullish outlook.

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Based on these developments, USDJPY is expected to rise above the 157.060 level in the near term. This time, the anticipated upward movement could lead to a more significant breakout, reinforcing the bullish Forex signal.

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