USDJPY Finds Support at 156.050

Market Analysis – January 13

USDJPY has successfully transitioned the major resistance level of 156.050 into strong support, solidifying its bullish momentum. Following this breakout, the pair continues its upward trajectory, buoyed by this critical level.

USDJPY Key Levels

Demand Levels: 150.000, 146.500, 140.300
Supply Levels: 156.050, 160.260, 163.350

USDJPY Long-term Trend: Bullish

USDJPY encountered a significant pullback in November after hitting resistance at 156.050. The price subsequently declined, with the Moving Average (9) crossing below the 21-period, signalling a bearish correction. This decline extended to the critical demand zone of 150.000, which coincided with an unmitigated bullish order block. The Stochastic indicator signalled an oversold condition at this level, prompting a reversal.

The resulting bullish momentum propelled USDJPY upward, breaking through the 156.050 resistance. Following this breakout, the level has been retested twice and now acts as robust support.

USDJPY Short-term trend: Bullish

A long-term bullish trendline connects the higher lows of this upward trend, reinforcing the bullish structure. Price action suggests that a test of this trendline will likely provide additional support, setting the stage for a potential rally toward the next supply level at 160.260. The price remains firmly in a bullish trend, with critical support at 156.050 underpinning the next leg of its ascent.

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