Happy Friday, dear traders. Today we come with a long-term technical analysis of the USDJPY market. Let’s dive into the analysis without further delay.
Key Technical Observations in USDJPY
1️⃣ Order Block (OB):
The chart highlights a key Order Block (OB) zone near the 157.5 level, which has historically served as both resistance and supply. This area is pivotal as it determines whether the bulls have enough strength to push the price higher or if bears will step in to stall the momentum.
2️⃣ Fair Value Gap (FVG):
Just below the OB zone lies a Fair Value Gap (FVG). This unbalanced price region may attract the price back into it for rebalancing before another upward leg. FVGs are critical zones where price corrections are likely to occur, providing strategic entry points for traders.
3️⃣ Rounded Bottom Formation:
The rounded bottom pattern visible on the chart is a classic bullish reversal indicator. This formation signifies the accumulation phase, followed by a breakout, which we are witnessing now. It suggests that the bullish momentum may extend toward the next significant levels.
4️⃣ Next Targets:
- The first immediate resistance is at 157.5 (OB zone). A break above this could open doors for USDJPY to test 160.0 or beyond, potentially aiming for new highs.
- The rounded bottom formation and the bullish structure suggest that any pullbacks into the FVG or lower support zones around 156.0 could be opportunities to re-enter long positions.
🔼 USDJPY Buy Scenario:
- Entry: Upon a confirmed breakout above the OB at 157.5 or after a retest of the FVG near 156.0.
- Target 1: 160.0 (psychological level).
- Target 2: 162.0 (extended target if bullish momentum persists).
- Stop Loss: Below 154.5 to minimize downside risk.
📢 What’s your take? Will USDJPY hit 160.0 soon?
❤️ Share your thoughts about this analysis in comments!
