USDJPY Breaks Out of Expanding Channel

USDJPY Analysis – December 16

USDJPY breaks out of the expanding channel to seek liquidity in lower trading zones. The market has continued to follow the downtrend initiated in November.

USDJPY Significant Levels

Demand Levels: 131.50, 126.60, 121.30
Supply Levels: 129.20, 144.60, 149.90

USDJPY Long-Term Trend: Bearish

Bulls’ buying pressure has increased significantly since March. The price action was revealed on the daily chart. More volatility was injected into the market. The slope of the upward trend changed from a gentle slope to a steep slope. The market created a very neat bullish market structure to reveal the dominance of the buyers. Little retracements were used to gather a lot of momentum from demand levels. The major levels at 126.00 and 131.50 were heavily utilised by the buyers to place more orders. The ATR (Average True Range) rose steadily from March on to show the strengthening of the uptrend. An expanding channel formed that rose to the supply level of 149.90.

There was a change in the direction of the market in November. The Stochastic revealed that the market was oversold. On the 10th of November, the market crashed with about a 4% fall in price. This was clear evidence that the bears were already in control. The bulls attempted to recover at 139.20 but failed as the price dived further.

USDJPY Short-Term Trend: Bearish

There is currently a pullback toward the supply area at 139.20. The market is already oversold on the four-hour chart. The bulls are expected to continue the drill in the zone to continue the downtrend. The market is expected to fall to 131.50.

You can purchase Lucky Block here.  Buy LBLOCK

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.