USDJPY shows a noticeable slowdown in its upward momentum. The absence of significant fair value gaps, which were previously evident as the pair approached the key level of 149.210, highlights this loss of strength. Additionally, the diminishing candle sizes around this zone suggest that buyers are beginning to lose their grip, indicating a potential weakening of the bullish trend.
September closed with a failed low of around 142.000, signalling an impending bullish reversal, which was later confirmed by a Change of Character (ChoCh). As October opened, the Lorentizan Classification indicator provided a clear buy signal marked by a green tag, leading to a strong bullish displacement. This move was characterized by large bullish candles and the presence of fair value gaps.
However, the upward drive appears to be losing momentum as the market shifts into a potential reaccumulation phase. Shrinking candle sizes and tighter alignment of the price action points to a slowdown, signalling reduced bullish enthusiasm.
USDJPY Short-Term Trend: Bullish
On the 4-hour chart, a rising wedge pattern has formed, indicating a possible consolidation phase. Although the market structure remains bullish, swing highs and lows are getting closer together, reflecting weaker upward momentum. Once this consolidation phase concludes, a breakout towards the 151.960 level is expected.
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USDJPY Short-Term Trend: Bullish
