USDJPY Analysis – December 20
USDJPY reverses downward as the price hits 151.900 resistance. The market appears to have finished its fifth wave of uptrending at the resistance level of 151.900. The market is headed towards the support level of 137.200 and is now in a negative trend. If the price does not validate the bearish order block around 145.000, USDJPY is expected to break higher and resume its bullish trend.
USDJPY Key Levels
Demand Zones: 137.200, 127.200
Supply Zones: 151.900, 160.400
USDJPY Long-Term Trend: Bullish
The hint of a bearish divergence caused the preceding market trend to finish in the premium zone. The 127.200 demand zone was the starting point of the bullish trend in January 2023. With an explosive rise, the USDJPY formed the first wave and reached the prior barrier at 127.200. Then there was a reversal as the price approached the key barrier. The price surged over the prior barrier at 127.200, forming a long-term bottom at 129.600.
Following the successful invalidation of the 127.200 resistance, the third wave proceeded. The USDJPY made a poor low at 138.400 as it moved in fractals. The third wave terminated a few days after the feeble bottom at 138.400 formed. It took a sell-side liquidity grab below the weak bottom of 138.400 to trigger the last wave. There was a comeback around 137.200, and then the last wave. A bearish divergence was observed by the RSI (Relative Strength Index) when the price got closer to the resistance level of 151.900.
USDJPY Short-Term Trend: Bearish
On the four-hour chart, the market’s order flow has been negative since the CHoCH (Change of Character) at 149.200. A bearish order block was just encountered by USDJPY at the 145.000 price level. If this bearish order block is validated, there is a good chance that the market will plunge sharply below the previous low of 141.000 and into the demand zone of 137.200.
Do you want to take your trading to the next level? Join the best platform for that here
- Broker
- Min Deposit
- Score
- Visit Broker
- Award-winning Cryptocurrency trading platform
- $100 minimum deposit,
- FCA & Cysec regulated
- 20% welcome bonus of upto $10,000
- Minimum deposit $100
- Verify your account before the bonus is credited
- Over 100 different financial products
- Invest from as little as $10
- Same-day withdrawal is possible
- Fund Moneta Markets account with a minimum of $250
- Opt in using the form to claim your 50% deposit bonus
Learn to Trade
Never Miss A Trade Again
Signal Notification
Real-time signal notifications whenever a signal is opened, closes or Updated
Get Alerts
Immediate alerts to your email and mobile phone.
Entry Price Levels
Entry price level for every signal Just choose one of our Top Brokers in the list above to get all this free.