USDJPY Reaches Oversold Region

Market Analysis – April 18

USDJPY has remained in a major downtrend since the start of the year, following a sharp market reversal. The pair is now approaching the key oversold demand level at 141.00.

USDJPY Key Levels

Demand Levels: 141.30, 138.00, 127.00
Supply Levels: 149.50, 158.10, 161.90

USDJPY Long-Term Trend: Bearish

After reaching the major resistance zone at 158.00, the Lorentzian Classification Indicator signaled a bearish reversal. This triggered a decisive break below the bullish trendline, confirming the shift to a bearish market structure.

The initial decline paused around the 149.50 support level. From there, USDJPY staged a brief pullback that pushed prices into overbought territory. However, fresh sell signals from the Lorentzian Indicator quickly fostered a renewed selloff.

Momentum has since remained firmly to the downside, with USDJPY now closing in on the 141.00 demand zone. The Williams Percent Range indicator shows that the market is already deep in oversold territory.

USDJPY Short-Term Trend: Bearish

The 4-hour chart also confirms a bearish market structure. Traders should closely monitor price action around the 141.00 support zone. A potential reversal could provide an opportunity to capitalize on a fresh trend shift.

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