USDJPY Initiates Retracements After Volatile Price Crash

USDJPY displayed a strong upward trend in the first half of the year, characterized by a bullish channel until the price reached a peak at 160.50. Recently, however, the market has shifted, transitioning to a sell-off and indicating a notable change in trend direction.

USDJPY Key Levels:

• Demand Levels: 141.90, 120.00, 100.00
• Supply Levels: 151.90, 156.30, 160.30

USDJPY Long-Term Trend: Bearish

The bearish breakout observed in July provided an early signal of a price reversal. Following this initial indication, multiple confirmations have supported the bearish trend. The Machine Learning Lorentizan Classification indicator generated a short forex signal on the daily chart, reinforcing the bearish outlook. Subsequently, the price broke below the demand zone at 156.30, confirming the trend reversal.

This descent has been marked by heightened volatility, as evidenced by the extended bearish daily candles and a notable increase in the Average True Range (ATR) reading. This surge in volatility underscores the intensity of the current bearish momentum.

USDJPY  Short-Term Trend: Bearish

Currently, the price has rebounded from the demand zone at 141.90. It is in the process of correcting towards the supply zone at 148.00, where a bearish order block is positioned. This current setup presents a significant opportunity for traders, as it facilitates the generation of the best forex signals. By monitoring this price action, traders can better align their strategies with the prevailing market conditions.

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