USDJPY Pulls Back to Supply Zone

USDJPY Price Analysis – December 30

USDJPY pulls back to the supply zone after a massive displacement on the 26th of November. The market was in long-term consolidation from early June till late September. During the period, the market ranged between the 110.750 supply zone and the 109.250 demand zone. A prominent breakout was seen on the 27th of September. It experienced a pullback to its previous supply zone at 110.750, for more bullish momentum.

USDJPY Major Market Zones

Demand Zone: 109.250, 112.760
Supply Zone: 110.750, 115.440

USDJPY Long Term Trend: Bullish

The Moving Average acted as support at the beginning of the bullish move after September 22nd. This was further confirmed after the Moving Average Convergence Divergence crossed below the zero mark on the 22nd of September. The bulls pumped the market and retraced back to the 112.760 demand zone to continue the bullish trend.

The upward trend was violated after the trendline was breached on the 26th of November. 115.440 was used as a supply zone to send the price back to 112.760. The zone was well defended by the bulls. A steady rise back to the supply zone is prominent with an ascending channel. This is also confirmed by the bullish relative strength index on the daily chart.

USDJPY Short Term Trend: Bearish

The supply zone at 115.440 is almost reached. The market pulls back to the supply zone since the 6th of December. The relative strength index is currently crossing into the overbought zone. Hence, the bears would seek to utilize the zone at 115.440 for a sell-off. The MACD indicator has also crossed above and is moving sideways, which shows readiness for a sell-off in the market.

You can purchase crypto coins here: Buy coins

Note: Learn2.trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.