The USDJPY pair experienced a significant reversal on February 28, as bulls failed to break through the critical resistance level at 158.1130. This led to a sharp decline in price, resulting in a break of the bullish trendline. The price has now reached a crucial support level at 149.500.
USDJPY Key Levels
Resistance level: 158.1130, 161.9240 Support level: 149.500, 141.3480
USDJPY Long-term trend: Bearish
The USDJPY market becomes overbought when it reaches the resistance zone of 158.1130, as indicated by the Stochastic indicator. The Smoothed Heikin Ashi red tag further confirms this, signaling a potential reversal as the price lingers at the 158.1130 level. Sellers take control, driving the price below the bullish trendline in the 24-hour timeframe.
After breaching the bullish trendline, the price declines, revealing areas of inefficiency marked by a fair value gap. The price quickly fills this gap with a pullback to a bearish order block. Upon testing the bearish order block, the price drops to the demand level of 149.500.
USDJPY Short-term: Ranging
In the lower timeframe, the price appears to be stalling at the key level of 149.500. This could be indicative of either redistribution or accumulation. A breakout of the range formed would provide a high probability setup for the best forex signals. Traders should closely monitor the price action around this level for potential trading opportunities.
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USDJPY Short-term: Ranging
USDJPY 
