USDJPY Seeks Bullish Momentum as Price Retraces Into Order Block

USDJPY Analysis – February 1

USDJPY seeks bullish momentum as the price retraces into the bullish order block. The current trading range is bounded between 137.000 and 152.000 price levels. The recent CHoCH (Change of Character) in January 2024 indicates that the bulls are now in control of the market. From the bullish order block around 145.000, USDJPY is likely to encounter overwhelming buying pressure.

USDJPY Key Levels

Demand Zones: 140.250, 137.200
Supply Zones: 148.800, 151.900

USDJPY Long-Term Trend: Bullish

The overall trend of the market has been bullish since last August. The bullish trend was confirmed after a rally from the discount zone through the 140.250 price level. The emerging rally occurred swiftly, after which a swing high formed at 151.720. Another swing high formed at 151.900 before a swift reversal to the downside. Against the bulls, USDJPY dropped even more rapidly until the price declined deeply into the discount zone. However, the current direction of the price reveals a retracement into a bullish order block.

The bullish order block formed during the massive expansion of USDJPY from 140.250 support. Earlier, before the formation of the bullish order block, a CHoCH (Change of Character) to the upside had occurred. The Change of Character happened as the price invalidated a previous high at 145.00. At the same price level, the bullish order block formed a week later. Forex signals suggest a favourable entry point as the price reenters the bullish order block at the 145.000 level.

USDJPY Short-Term Trend: Bearish

The market’s direction on the four-hour chart is bearish as the price declines alongside a diagonal resistance. An entry into the bullish order block in the discount zone is likely to cause a massive surge strong enough to invalidate the diagonal resistance.

Do you want to take your trading to the next level? Join the best platform for that here