USDJPY Poised for Downward Spiral

 

Market Analysis – March 6

The USDJPY pair has encountered significant resistance at the key level of 158.1130, leading to a reversal in market direction. Following this, the price declined to the support zone of 149.4970. However, the support zone has since been breached, and USDJPY is now poised for a sharp decline.

USDJPY Key Levels

• Demand Levels: 149.4970, 141.3470
• Supply Levels: 158.1120, 161.9250

USDJPY Long-term Trend

At the resistance level of 158.1130, the Smoothed Heikin Ashi candles generated a bearish signal, prompting a price decline. This decline resulted in the breakage of a bullish trendline on the daily chart. During the price drop to the demand level of 149.4970, a bearish order block emerged, characterized by a fair value gap indicating market inefficiency.  This development provided the best forex signals telegram channels with an opportunity to establish a well-timed shorting trade.

Upon reaching the demand level of 149.4970, the same pullback pattern into a bearish order block, marked by a fair value replay, recurred. This repetition lent sufficient strength to the bears to break through the support level of 149.4970.

USDJPY Short-term Trend

The successful breakout from the support level of 149.4970 has significantly bolstered the sellers’ position. With the price now set for a free fall and a downward spiral, the next major target zone is 141.3480. A continuation of the bearish momentum could potentially lead to further declines, making it essential for traders to monitor the pair’s movement closely.

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