USDJPY Signals Increased Bullish Momentum

USDJPY Analysis – January 13

USDJPY signals an increase in bullish momentum, with targets at the 147.300 price level. The market is experiencing a divergence, with a potential reversal to the upside. The RSI (Relative Strength Index) has shown interesting patterns, suggesting an upward reversal. The MA Cross indicates a bullish trend, and USDJPY is likely to continue the bullish trend until the premium zone of the trading range is reached.

USDJPY Key Levels

Demand Zones: 140.250, 137.200
Supply Zones: 147.300, 151.900

USDJPY Long-Term Trend: Bullish

Recently, there’s been a surge in market dynamics, leading to a noteworthy peak in momentum. This shift has brought about a Change of Character (CHOCH), creating anticipation for the potential market’s reversal to the upside. As USDJPY navigates these changes, indicators such as the RSI (Relative Strength Index) come into play, revealing interesting patterns. Oversold conditions were observed at the 140.250 low, reinforcing the possibility of a bullish reversal. This has prompted strategic considerations, with attention drawn to a target level of 147.300.

Before the reversal, which is currently ongoing, the RSI (Relative Strength Index) revealed a bullish divergence. The bullish divergence occurred as the price formed lower lows against the higher lows of the RSI (Relative Strength Index). Moreover, the MA Cross has indicated that the market is now undergoing a bullish trend. Apparently, the trading range of USDJPY remains within the resistance and support ranges of 151.900 and 137.200, respectively. USDJPY is likely to continue the ongoing bullish trend until the premium zone of the trading range is reached.

USDJPY Short-Term Trend: Bullish

Following the break of structure to the downside at 140.950, the price experienced a massive surge, which led to the CHoCH (Change of Character). Due to the CHoCH, the market’s trend on the four-hour chart is currently bullish. A break of structure to the upside is being anticipated as the bullish trend continues with increased momentum.

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