USDJPY Ascends to the Supply Level of 138.00

Market Analysis – February 2

USDJPY bulls have almost reached the 138.00 supply level. The price of the market is soaring at great speed.

USDJPY Key Levels

Demand Levels: 131.30, 127.50, 124.00
Supply Levels: 134.40, 138.00, 142.00

USDJPY Long-term Trend: Bullish

USDJPY paddled back and forth within a bearish channel to the demand level of 127.00. Before the descent, the market launched from a 142.0 demand level to a 150.00 supply level. The bullish order block at 142.00 failed to hold. The aggressive decline in price formed the supply level and created a fair value gap in the daily chart.

The market was oversold in January at the 127.00 support level. A failure swing revealed the influx of buyers at the demand level. A change of character (ChoCh) delivered the daily candles from the bearish channel. The retest of the 130.0 support level has fostered the bullish ascent. The Parabolic SAR (Stop and Reverse) indicator is currently supporting an uptrend in the market.

USDJPY Short-term Trend: Bullish

The market is bullish on the lower timeframe. The market direction on the higher timeframe is similar to the lower timeframe. The Stochastic indicates an overbought market in the daily and 4-hour timeframes; a retracement is anticipated after the test of the 138.00 supply level.

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