USDJPY Breaks Major Resistance Zone

Market Analysis – December 25

USDJPY has regained its bullish momentum after overcoming the key resistance at 156.050, a level that previously halted its upward trend in November. Following a deep retracement, the bulls have reorganized, pushing the price above this critical threshold.

USDJPY Key Levels

• Demand Levels: 150.000, 146.490, 140.250
• Supply Levels: 156.050, 160.260, 163.350

USDJPY Long-Term Trend: Bullish

In November, USDJPY tested the resistance at 156.050, which triggered the formation of a head and shoulders pattern, signalling a potential reversal. During this phase, the 9-period Moving Average crossed below the 21-period Moving Average, confirming a short-term descent.

The price retraced to a bullish order block situated near the psychological level of 150.000, where buyers re-entered the market. This recovery gained momentum as the price moved above the Moving Averages. Simultaneously, the MACD displayed green histogram bars, reinforcing the bullish outlook.

USDJPY Short-Term Trend: Bullish

The recent rally successfully broke the 156.050 resistance level, affirming the long-term bullish structure. On the daily chart, a bullish order block now resides below this resistance, which could act as a support zone if the price pulls back.

Traders should monitor for a potential structural shift on lower timeframes during a pullback. This could provide a high-risk-to-reward opportunity for forex signals to capitalize on further bullish momentum. Such setups may offer optimal conditions for identifying profitable long positions.

Make money without lifting your fingers: Start using a world-class auto trading solution