USDJPY Resumes Market Ascent

Market Analysis – May 16

USDJPY capitalized on the confluence zone formed earlier this month to resume its upward trajectory. The region was formed by the intersection of the 151.90 demand level and the bullish trend line.  The confluence region provided opportunity for long positions, particularly evident as the Stochastic indicator signaled market oversold conditions.

USDJPY Key Levels:

• Demand Levels: 151.900, 146.50, 140.80
• Supply Levels: 160.40, 165.00, 170.00

USDJPY Long-Term Trend: Bullish

After experiencing a pullback, USDJPY regained momentum to resume its bullish ascent, encountering a pause at the supply zone of 160.40. Throughout the retracement, the Williams Alligator indicator consistently affirmed the bullish sentiment prevailing in the market.

The interception of the demand level with the bullish trendline created a robust bullish confluence, with market dynamics indicating a swift reversal upon reaching this zone.

USDJPY Short-Term Trend: Bullish

Currently, the market is on course to revisit the supply zone at 160.40, the point where the retracement originated. Notably, a bullish order block within a fair value gap is observable in the four-hour timeframe. The fair value gap gives more credibility to the bullish orderblock. Apparently, the best forex signals Telegram services primarily utilize this type of setup. This anticipated scenario is poised to propel the price back toward the previous swing high of 160.40.

Do you want to take your trading to the next level? Join the best platform for that here