USDJPY Ascends Following a Retest

Market Analysis – February 9

The strength of the downward trend on the USDJPY market has declined notably since December. The ADX (Average Daily Index) declined gently from December until February.

USDJPY Key Zones

Demand Levels: 131.30, 127.50, 124.90
Supply Levels: 134.40, 142.00, 150.00

USDJPY Long-Term Trend: Bullish

The USDJPY’s impulsive swings highlighted the market’s direction. The bullish counter trend movement was sluggish, however the downward delivery was startling. The price declined into the oversold region in January. The buyers utilized the opportunity to benefit from the discounted price. The daily candles broke out of the bearish channel.

The month of February opened with a retest of the descending trendline. The Parabolic SAR (Stop and Reverse) indicator is signifying bullishness on the daily timeframe. The market has ascended to 131.30 after the test of the downward trendline. A retracement to fill up more buying orders is currently anticipated as the Williams % R (Percent Range) is showing that the market is overbought.

 

USDJPY Short-term Trend: Bullish

In the four-hour timeframe, a change of character (CHoCH) has formed. Long bullish candles spiked away from the bearish trendline, leaving fair value gaps behind. The market is currently retracing back to the demand level of 127.50. The pullback is expected to provide buyers with the opportunity to go long in the market.

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