USDJPY Pulls Back to Fair Value Gap

Market Analysis – September 26

USDJPY market has initiated a retracement after sweeping the major low at 140.790, which previously triggered an upward move. This bullish pullback has now driven the price into a region of market inefficiency, identified as a fair value gap (FVG). Traders are closely watching how price action reacts in this zone.

USDJPY Key Levels

Demand Levels: 140.790, 137.240, 133.740
Supply Levels: 147.050, 149.210, 157.750

USDJPY Long-Term Trend: Bearish

The USDJPY remains in a well-defined downtrend. Lower highs and lower lows continue to dominate the market structure, confirming the bearish momentum. Despite this, the speed of price delivery in recent weeks was too swift to allow a full pullback to the supply zone at 152.750.

The most recent bearish displacement from 147.050 down to 140.790 was particularly rapid, leaving inefficiently traded areas behind. The current price pullback is attempting to fill this inefficiency as the market works to correct itself.

USDJPY Short-Term Trend: Bearish

On both the higher and lower timeframes, the Williams Percent Range is signaling overbought conditions. Although the pullback on the higher timeframe has formed a strong uptrend on lower timeframes, a bearish shift in market structure is expected soon. The fair value gap has now become an Area of Interest (AOI). The AOI can be used to derive an entry price for the best forex signals telegram group. If a bearish reversal occurs, it could lead to a sell-off toward the major psychological level of 140.000, where the next key demand zone lies.

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