USDJPY Bearish Decline Pauses at Bullish Order Block

Market Analysis – December 5

USDJPY shifted to bearish after the price struck the resistance zone at 156.0540. The subsequent price decline has paused as the pair tests a bullish order block near the 150.2060 level.

USDJPY Key Levels

Demand Levels: 140.250, 137.420, 130.630
Supply Levels: 156.050, 160.260, 163.350

USDJPY Long-term Trend: Bearish

The previous bullish trend began in October with a breakout above the swing high at 146.4910. This upward movement breached the resistance trendline, signaling a transition from a downtrend to an uptrend. The Supertrend indicator supported this shift, displaying a green hue positioned below the daily candles, confirming bullish momentum.

However, the resistance level test at 156.0540 marked a significant turning point. The uptrend faltered as the last swing low failed, signaling a bearish reversal. The Supertrend indicator now displays a red cloud above the daily candles, further confirming the shift in market direction. This transition indicates that sellers have regained control.

USDJPY Short-term Trend: Bearish

On the lower timeframe, a Change of Character (ChoCh) has emerged, highlighting the potential for further bearish continuation. However, traders should wait for confirmation from a higher timeframe shift in market structure to validate this directional bias. Aligning these signals can help generate accurate forex signals while minimizing risk.