USDJPY Key Levels to Watch
The USDJPY currency pair is trading around 138.35 trying to stabilize the price above the demand zone at 137.33. The green long wick shadow candle-stick signals a continuation to the mail bullish trend. Continuing to the current market situation, please note that the price reacted downward to the 23.6 level of the Fibonacci Retracement which act as a minor support to the pair. The inverted hammer candle stick supports the sellers will in keeping the downtrend active.
The 23.6 level acts as today's resistance, the bullish trend would probably resume if the market can close above 139.4 in the 4H time-frame. On the other hand 137.33 is the main support, and a breach in this level will signal the continuation of the negative movements which was initiated from 145.
The USDJPY currency pair is currently trading around 138.35, as it attempts to stabilize its price above the key demand zone at 137.33. Notably, the appearance of a green long-wick shadow candlestick signals a potential continuation of the main bullish trend. In light of the current market situation, it’s important to note that the price has reacted downward to the 23.6 level of the Fibonacci Retracement, which is acting as a minor support for the pair. Furthermore, the presence of an inverted hammer candlestick further supports the sellers’ efforts to keep the downtrend active.
In terms of resistance, today’s level is at the 23.6 mark. If the market can close above 139.4 in the 4H time-frame, it’s likely that the bullish trend will resume. On the other hand, 137.33 serves as the main support level, and a breach of this level could signal a continuation of the negative movements that were initiated from 145.
In conclusion, key levels to watch for USDJPY on July 18th, 2023 include a support level at 137.33 and a resistance level at 139.4.
What is an Inverted Hammer
An inverted hammer is a type of candlestick pattern that is usually found after a downtrend and is often taken to be a trend-reversal signal. The pattern is made up of a candle with a small lower body and a long upper wick, which is at least two times as large as the short lower body. The body of the candle should be at the low end of the trading range, and there should be little or no lower wick in the candle.