USDJPY Encounters Resistance at Key Bearish Order Block 

Market Analysis – October 24

USDJPY continues its bullish trajectory, sustaining robust upside momentum that has propelled it past previous resistance zones. This recent upswing emerged after a reversal from the 140.420 demand zone, a critical level that spurred a bullish wave at the start of the year in January. Now, the pair confronts a notable barrier at the bearish order block around 153.00, which poses a potential resistance point and may inhibit further gains in the short term.

USDJPY Key Levels

Supply Levels: 153.000, 155.190, 160.100
Demand Levels: 149.210, 147.050, 144.500

USDJPY Long-term Trend: Bullish

The breakout above 147.10 confirmed a bullish trend and was solidified by a crossover between the 9- and 21-period Moving Averages, marking a shift in market sentiment. Following this upward movement, a bullish wedge pattern developed near 149.410. The 9-period Moving Average provided essential support, propelling the pair out of the wedge and toward the 153.00 resistance level, a bearish order block that now constrains further upside.

This 153.00 resistance area shows its strength, reflected by the formation of a recent down-close candle on the daily chart. Coupled with an overbought signal from the Stochastic indicator, this implies that further upward movement might be limited unless a consolidation phase occurs.

USDJPY Short-term Trend: Bullish

In the shorter term, a pullback may allow USDJPY to gather enough momentum for a potential breakout above 153.00. Price is showing signs of deflection from this resistance zone toward the bullish order block at 149.20, visible on the 4-hour chart. The Stochastic oscillator currently approaches the oversold region, indicating that buying interest might strengthen as the price nears the order block. If the Stochastic indicator hits the oversold level while price tests this order block, it could trigger a bullish response. The best forex signals will utilize multiple confirmations reinforcing the overall uptrend.

Make money without lifting your fingers: Start using a world-class auto trading solution

[xyz-ihs snippet="Markets"]