USDJPY has retraced after reaching the resistance level of 157.500. Notably, upon touching the resistance level, the price plummeted to the bullish order block of 151.120.
The price oscillates within a narrow range, bounded by support and resistance levels. The bounce off the bullish order block indicates a recovery attempt by buyers.
The USDJPY pair is currently exhibiting a bullish trend. However, the resistance at 156.050 triggered a retracement. In January, a divergence occurred as the price action formed a higher high, while the RSI (Relative Strength Index) formed an equal high. This divergence, which happened in the overbought region, signalled market weakness and preceded a price dip.
The dip to the bullish order block has shown positive signs, with a quick bounce-off indicating the active attempt of bulls to recover. Furthermore, the RSI has signalled that the market is oversold, providing an optimal entry point for the best forex signals.
USDJPY Short-term Trend
The retracement poses a threat to the prevailing uptrend. A dip below the swing low of 148.00 would likely transform the trend to bearish. Conversely, a push above the resistance level of 157.500 would confirm the successful continuation of the uptrend.
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USDJPY Short-term Trend
USDJPY Short-term Trend
