USDJPY Price Continues to Fall

USDJPY Analysis – December 22

USDJPY price continues to fall after the shift in market structure at 149.90. To confirm a change in the market trend, the Moving Averages (periods 50 and 30) crossed.

USDJPY Major Levels

Demand Levels: 131.50, 126.60, 121.30
Supply Levels: 139.20. 144.60, 149.90

USDJPY Long-term Trend

The USD/JPY market was on an uptrend from May to September. The highs and lows were held together by a bullish widening channel until the supply level of 149.90 was hit. In May, the rising market saw a reversal. The daily candles were pressed on the Moving Averages period 50 for support. The market retraced to 126.60 in order to gain bullish momentum in order to resume the rise. The Stochastic indicated that the market was oversold. Buying pressure was evident at the 126.69 demand zone as the market continued its bullish trend.

The second major pullback was experienced in July. The price sank slightly below the Moving Averages. The Stochastic indicated that the market was oversold. A double bottom reversal pattern formed on the 131.50 demand level. The daily candles shifted above the Moving Averages to reveal the resumption of the uptrend. The market eventually reached the 149.90 supply level, where there was a significant rejection candle, showing a sign of a change in the direction of the market. The change in market direction was confirmed by the Moving Averages that crossed in November.

USDJPY Short-term Trend

The bears have continued to purge the market since the change in market direction was confirmed. There has been a consistent selloff for every retracement back to the Moving Averages. A triple top formed in the bearish order block range at 139.20. The market eventually crashed to 131.50. The Stochastic is currently oversold on the 4-hour chart. The market is expected to retrace back to the bearish order block to continue to sink the price.

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