USDJPY Buyers Finally Resume the Uptrend From a Discount

USDJPY Analysis – November 17

USDJPY buyers finally resume the uptrend after a discount. Up until late October this year, USDJPY buyers had been in absolute control of the market. Though the market’s order flow is still bullish, the USDJPY sellers have been having a nice moment in this current phase.

USDJPY Significant Zones

Demand Zones: 139.40, 135.50
Supply Zones: 145.10, 151.90

USDJPY Long-term Trend: Bullish

The market has completed its upward wave. USDJPY seems to be in a correction phase now as it prepares for the next major wave, either to the upside or the downside. The motive wave emerged from a consolidation phase, and since then, the USDJPY buyers have been gallivanting upward as the bears became so fearful to storm the market.

The breakout from the consolidation phase happened on March 4, 2022. The price rallied from here into the peak of the first wave, which was on March 28, 2022. Without budging, the bulls stormed the market again. The third impulse leg, which appears to be the longest impulse leg in the market, had its moments for about four months before correcting to the downside. On August 29, 2022, the USDJPY buyers drove the price upward. A bullish order block was created in this movement as the price continued into the supply zone at 151.90. The market does seek sell-side liquidity (SSL) before making a notable expansion to the upside. From the supply zone of 151.90, USDJPY sank deeply into the discount zone to hit the bullish order block.

USDJPY Short-term Trend: Bearish

Since USDJPY completed the fifth impulse leg, the market has been in downtrend on the four-hour chart. Following a subsequent break of structure to the downside, the market entered the discount zone and grabbed sell-side liquidity (SSL). An expansion to the upside is expected to begin from here until the 145.10 resistance is reached.

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