USDJPY Is on the Verge of a Bullish Breakout

Market Analysis – May 15

The USDJPY market has displayed a very discernible direction since the previous year. The market has not experienced consolidation for a long time. USDJPY is on the verge of a bullish breakout above 138.0.

USDJPY Key Levels

Demand Levels: 130.0, 127.0, 125.0
Supply Levels: 138.0, 142.0, 146.0

USDJPY Long-term Trend: Bullish

The market displayed a clear pattern of support and resistance as the price plummeted from November to mid-February. The daily candles also aligned perfectly in a bearish channel. After a market reversal in February, the market ascended to the supply level of 138.0.

The Williams Percent Range revealed the market was overbought when the resistance level was tested at 138.0 on the 8th of March. An unmitigated order block resisted a further rise in the price. The market dived back to the major level of 130.0.

USDJPY Short-term Trend Bullish

The rising wedge has aided the rise in the price toward the resistance level of 138.0. A breakout above the rising wedge has produced a retracement for a retest. The retest is expected to shoot the price to 138.0.

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