USDJPY Is Set to Surge to 144.950 Amidst Ongoing Downtrend

USDJPY Analysis – January 3

USDJPY is set to surge to 144.950 amidst an ongoing downtrend. The market has experienced a significant uptrend into the premium zone until November 2023. However, a Change of Character (CHOCH) emerged, leading to a long-lasting decline. The Stochastic Oscillator showed oversold conditions at 140.950, suggesting a possible reversal.

USDJPY Key Levels

Demand Zones: 137.200, 127.200
Supply Zones: 151.900, 160.400

USDJPY Long-Term Trend: Bullish

The USDJPY has had a remarkable ride, spending a considerable amount of time stuck between the 151.900 and 137.200 levels. First characterized by a strong bullish run into the premium zone, the market turned with a notable rebound off 137.200. A swing low formed afterwards, giving rise to the start of an uptrend. The bullish trend was confirmed with a higher low at 138.060. But in October 2023, at 151.900, the bullish momentum reached its peak.

Following this apex, a Change of Character (CHOCH) emerged, which started a long-lasting decline. The Stochastic Oscillator showed oversold conditions at the most recent low of 140.950, pointing to a possible reversal. Anticipating a change in the characteristics of the market, a higher advance is anticipated, with 144.950 as the goal. This prediction makes sense from a tactical standpoint, given the possible buy-side liquidity at 144.950, which is likely to be cleared before the decline picks back up.

USDJPY Short-Term Trend: Bullish

A bearish order block formed on December 15, 2023, as the market continued its downtrend on the four-hour chart. Following the BOS (Break Of Structure) at 140.950, USDJPY expanded upward. The surge is expected to continue, at least into the four-hour bearish order block before the downtrend is resumed.

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