USDJPY Experiences Bullish Breakout

Market Analysis – July 18

USDJPY ascended into an unmitigated bearish order block in May, which triggered a significant retracement in price. However, buyers have since reorganized their positions and successfully established a Break of Structure (BOS) above the swing high that had initiated the crash in May, confirming renewed bullish strength.

USDJPY Key Levels

Demand Levels: 142.820, 139.870
Supply Levels: 148.680, 151.080

USDJPY Long-term Trend: Bullish

USDJPY consistently formed higher highs and higher lows, building upward momentum into the key bearish order block at 148.680. This particular order block held strong bearish potential due to the presence of a fair value gap. Upon contact, sellers aggressively entered the market, driving a sharp price decline. The final bullish order block before the fair value gap failed to withstand the bearish pressure and was ultimately broken.

Despite this, the market did not confirm a bearish shift in structure, as no swing low was decisively taken out. This signaled that the broader bullish bias remained intact.

Following the decline, the Stochastic indicator reached oversold territory, indicating seller exhaustion. The market consolidated for a period, suggesting that momentum was being regained. Shortly afterward, bullish interest returned with force. The subsequent bullish displacement was marked by steep momentum and visible fair value gaps—evidence of rapid price movement and inefficiencies being filled. This push ultimately led to a confirmed bullish Break of Structure (BOS), clearing the last major high that initiated the earlier crash in May.

USDJPY Short-term Trend: Bullish

On the higher timeframe, price recently tapped into a bullish order block that provided support for the renewed ascent. The Parabolic SAR (Stop and Reverse) indicator confirms upward movement across both higher and lower timeframes. Given this sustained momentum, price is now expected to continue expanding toward the 151.082 level.