USDJPY Market Bears Approach Their Final Wave Towards a Demand Zone

USDJPY Analysis – August 11

USDJPY market bears approach the last wave as the price crashes down towards a major demand zone. This market wave began its first impulse on the 9th of March, 2022. Currently, the market appears to be following the Elliot waves theory, with prices moving in fractals.

USDJPY Significant Zones

Supply Zones: 137.10, 139.40
Demand Zones: 130.50, 126.50

USDJPY Long-Term trend: Bullish

Ever since the market broke out through the highs of its ranges that began on the 4th of January, 2022, the market has been rallying upward with high volatility. On the daily timeframe, wave 1 seems to be the longest of all the waves. Wave 2 began as a result of the reaction of the market at the previous supply zone of 126.50. On the 6th of July, 2022, the third wave became obvious as it broke past the high that marked the end of the first wave.

The third wave ended at a major supply zone of 139.40. At the early stage of the third wave, an order block was formed on the daily timeframe, which indicates that there is a large volume of buy orders in that zone. On the 6th of June, the order block caused the market to break beyond the high connecting the first wave and the second wave. This further confirmed the validity of the daily order block.

USDJPY Short-Term Trend: Bearish

On the four-hour timeframe, the market order flow appears bearish. The market downtrend began its first impulsive wave at the 14th hour on the 14th of July, 2022. Currently, the market is expected to keep sinking until it gets into the daily order block around the demand zone at 126.50, which will most likely cause a shift in market structure to the upside.
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