USDJPY Buyers Keep Rallying the Price to the Upside

USDJPY Analysis – October 20

USDJPY buyers keep rallying the price to the upside. The market appears unsafe for the USDJPY sellers as the buyers relentlessly keep the prices bullish. Since the price hit the support at 131.20, the USD’s rapid rise against the Yen has gone uncorrected. Forecasting the market’s high has been difficult for USDJPY sellers, who have been whipped out at almost every expected entry.

USDJPY Significant Zones

Demand Zones: 131.20, 126.20

Supply Zones: 146.50, 153.70

USDJPY Long-Term Trend: Bullish

 All through the first three months of the year, prices remained confined within a specific trading range. The high and low of the range are 116.352 and 113.470, respectively. An explosive move outside this trading range attracted more USDJPY buyers into the market. On the 28th of January, USDJPY made its first correction on the daily timeframe. While this correction was necessary, the USDJPY buyers could not wait for a longer correction as they stormed the market aggressively. Exactly one month after this short correction, prices made another correction. This correction was clearly longer and more important as prices sank into a liquidity pool to gain enough buying force for the next bull run.

 The next wave following the relatively long correction lasted till July 14, 2022. Like a planned event, the price repeated the same action as it did in the previous impulse wave. The price broke through an old low and moved deeper into the discount zone, capturing enough liquidity for the next bull run. On August 22nd, 2022, the MA Cross revealed that the next uptrend had begun. The USDJPY buyers just caused the current impulse wave to extend beyond the 146.50 resistance level. Using the just concluded swing leg, price is expected to rally into the-100% fib retracement level before a rejection can possibly occur.

USDJPY Short-Term Trend: Bullish

The successful liquidity grab below the old low on the four-hour time frame caused more USDJPY buyers to storm the market. Price is expected to make a correction into the four-hour bullish order block before the bullish trend is continued.

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