USDJPY Reveals Signs of a Potential Reversal

Market analysis – November 17

USDJPY reveals signs of a potential reversal as it respects the 152.000 supply level. The bullish momentum is weakening as the price forms a bearish reversal pattern.

USDJPY Key Levels

Demand Levels: 145.100, 141.900, 138.400
Supply Levels: 148.600, 152.000, 154.000

USDJPY Long-Term Trend: Bearish

The market experienced a bullish break of structure as the price surpassed the 145.100 region, indicating strong upward momentum. However, this momentum waned as the price failed to breach the 152.000 supply level.

Furthermore, as the trend continued to rise, it formed a rising wedge pattern, which is typically a bearish reversal pattern, suggesting that the bullish momentum may be coming to an end. The formation of a double-top pattern near the 152.000 level further supports the potential for a bearish reversal.

These technical signs point to a possible trend reversal, with the price dropping sharply as it respects the 152.000 level. The Moving Average also confirms bearish price action, with the price trading below the moving average.

USDJPY Short-Term Trend: Bearish

The price action is currently bearish, with a break out from the rising wedge pattern indicating a downward trend. The breach of the trend line supports the higher time frame bias towards the bearish side. It is expected that the breakout will retest the trend line before the bearish move continues.

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