USDJPY has experienced a significant development, as it finally achieved a bullish break of structure (BOS) above the swing high formed in November. This breakout signaled a potential bullish trend continuation. However, shortly after the BOS, the price slipped into the supply zone of 158.110, where sellers regained control.
Following the price’s reach of the supply level at 156.110, a change in market direction was swiftly indicated by the change in hue of the smoothened Heikin Ashi candles. The daily custom candles promptly crashed below the smoothened Heikin Ashi candles, revealing a decline in price.
The price has drilled down to the critical zone of 149.500. Notably, the Williams Percent Range indicator suggests an oversold market, which may provide buyers with leverage for a potential reversal. However, the market structure and the ease with which the price reached the zone indicate strong selling momentum. This momentum could potentially pierce the zone, leading to lower levels.
USDJPY Short-term Trend: Bearish
On lower timeframes, the formation of lower highs leading to the demand level of 149.500 has consistently aligned with a resistance trendline. Selling pressure is anticipated to increase as the price retests the trendline, potentially breaking the demand level. The zone is a critical area of interest for major market participants.
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USDJPY Short-term Trend: Bearish
USDJPY Short-term Trend: Bearish
