USDJPY Retraces to Bullish Order Block

Market Analysis – July 8

USDJPY is currently ascending, supported by a trendline on the daily chart. Recently, the price broke above the previous high of 160.00. Now, it is retracing towards the bullish order block at 158.00, seeking support for a continued uptrend.

USDJPY Key Levels:

• Demand Levels: 154.50, 151.90, 146.50
• Supply Levels: 160.00, 165.00, 170.00

USDJPY Long-Term Trend: Bullish

The bullish trendline on the daily chart has reliably predicted the resumption of the uptrend after pullbacks. Notably, the price reversed on the third, fourth, and fifth tests of the trendline. Moreover, the Bull and Bear Power indicator has accurately predicted pullbacks that led to the tests of the trendline. When the histogram bars turn red and read below 0, it indicates pullbacks.

Currently, an unmitigated bullish order block at 158.00 acts as a price magnet. Even though the price has dipped below the 9-period Moving Average, it remains above the 21-period Moving Average. This suggests the market is still in an uptrend.

USDJPY Short-Term Trend: Bullish

On the 4-hour chart, the market structure has turned bearish. The price now sits below the 9 and 21-period Moving Averages. This aligns with the Bull and Bear Power indicator, which shows sellers gaining strength. However, the price is expected to decline to the bullish order block. This support will likely propel the price above the previous swing high of 162.00.