USDJPY Buyers Take Partial Profits From the Market Towards the Supply Zone

USDJPY Analysis – September 8 

USDJPY buyers take partial profits from the market as the price retraces from the supply zone at 145.00. The current bullish trend began on August 2nd, 2022. The bullish trend preceded the market structure break (MSB) that led the bulls back to storm the market. 

USDJPY Significant Zones

Demand Zones: 131.50, 126.60
Supply Zones: 140.30, 145.00

USDJPY Long-Term Trend: Bullish 

The market’s overall trend has been aggressively bullish for a very long time, as indicated by the Moving Averages Cross (MA Cross) indicator. The MA Cross shows that the market stays more in bullish trends than in bearish trends. On May the 9th, 2022, the market ceased to continue its expansion upward as the market hit the previous resistance at 131.50. The market remained in an indecisive position until the USDJPY buyers stormed the market at the 126.60 support level. At the 126.60 support level, buyers of USDJPY drove the price of the pair up to the peak of the impulsive wave.

As the buyers continued to keep up with the bullish trend, USDJPY was driven into an overbought region. This overbought indication, coupled with a bearish divergence on the RSI indicator, crashed the market down on the 14th of July, 2022. On the 2nd of August, 2022, the bearish trend was short-lived by the piles of buy orders set at the demand zone of 131.50. The bullish trend continued at this level as the market rallied into the 100% extension level at the supply zone of 145.00. The market is projected to keep rallying upward through the 161.80% extension level. 

USDJPY Short – Term Trend: Bullish

The current market trend in the four-hour time frame is bullish. The USDJPY might continue being bullish and forming higher highs and higher lows until a shift in market structure occurs to the downside. The fair value gap around the 140.00 level is expected to act as a retracement level for the buyers to continue driving the price upward.

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