USDJPY – Guide, Tips & Insights | Learn 2 Trade – Guide, Tips & Insights | Learn 2 Trade currency pair has undergone a significant reversal in its daily bias. The market experienced a bearish shift after failing to sustain a pattern of higher highs. This reversal signals potential structural weakness in the bullish trend, which had been in place since September 2024.
The uptrend that began in September 2024 saw a strong bullish rally. It was characterized by a series of decisive bullish candles that pushed the price past the critical 154.640 supply zone. This momentum fueled further gains, culminating in the formation of a major higher high at 158.390.
However, as price action approached this key resistance level, selling pressure intensified, leading to a significant rejection. The failure to establish a new higher high confirmed a structural shift, breaking the prevailing bullish market structure and setting the stage for a bearish correction. The daily Moving Average indicates a bearish signal, reinforcing the likelihood of further declines.
Despite the broader bearish bias on the daily timeframe, the short-term trend on the 4-hour chart suggests a corrective bullish move. Price action has formed a failed low. This is often an early sign of a temporary bullish retracement before the broader bearish trend resumes.
Currently, the market is expected to retrace towards a significant daily order block, where key Fibonacci retracement levels (0.68 and 0.5) align with this zone. This confluence strengthens the probability that the order block will act as a resistance level, potentially resuming the bearish momentum once the retracement phase is complete.
If selling pressure increases after the retracement, USDJPY – Guide, Tips & Insights | Learn 2 Trade – Guide, Tips & Insights | Learn 2 Trade could continue its bearish descent, reinforcing the shift in daily market structure.
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USDJPY – Guide, Tips & Insights | Learn 2 Trade – Guide, Tips & Insights | Learn 2 Trade Short-Term Trend: Bullish
