USDJPY Bears Get Squeezed Out as the Market Keeps Rallying Upward

Analysis – August 18

USDJPY bears get squeezed out as the market keeps rallying upward towards the 139.50 support. The overall trend of the market has been bullish for months. As the market approached the resistance levels, it retraced for a while before breaking through. Though a change in the market environment occurred after the all-time high and the breakout below the support at 135.70, the market still looks bullish after respecting the 130.40 support.

USDJPY Market Levels

Resistance levels: 139.50, 143.40
Support levels: 130.40, 135.70

USDJPY Long-term Trend: Bullish

The previous resistance at 130.40 held for a retest and was broken after taking out the liquidity below the immediate swing low as the USDJPY trend continues upward. As the price continues to rise above the previous resistance level of 130.40, the MA Cross indicator confirms that the bulls are dominating the market. The USDJPY continues to rally in fractals, with each impulsive wave indicating the presence of the bulls.

While the USDJPY continued to rise upward, the RSI revealed that it had been in an overbought region for some time, until the resistance level of 139.50 was breached. This resistance zone appears to be significant because it rejected prices downward and changed the market environment to the downside. The bears appeared to have a good reason to take over the market as the change in the market environment occurred, and they purged prices further downward until the 130.40 demand level was reached.

USDJPY Short-term Trend: Bearish

The market environment changed to an uptrend when the USDJPY broke above the swing high on the four-hour time frame on August 5th. The market is projected to keep rallying upward until the resistance level of 139.50 is breached and the market reaches its 100% expansion level.

You can purchase DeFi Coin here: Buy DEFC

Note: Learn2.trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.