USD/JPY – Time for a Pullback?
Overview:
After 48 hours of nonstop downward movement in USD/JPY with barely any pullbacks, the pair is looking a bit stretched. We’re currently sitting at a key support level, and I’m seeing signs that we could get a relief pullback soon—not a full reversal,
but a correction to balance things out.
What I'm Watching:
Liquidity and Fair Value Gap: The market seems imbalanced between 143.80 and 144.50. With no upward movement recently, this area could attract some buying pressure.
Support Level: We’re currently hanging around 143.00, a decent support level. If we hold above it, I expect the price to return to that liquidity zone.
The Setup:
Pullback Target: If the price holds here, we could see a pullback toward the 144.500-145.050 range.
Stop-Loss: If things don’t go as planned, a stop below 142.80 would be a good idea to manage risk.
Why I'm Eyeing This:
The market’s been overly one-sided, with heavy selling and no meaningful pullbacks. Combine that with the imbalance and fair value gap in the 144 zone, and it feels like the pair is overdue for some correction, even if it’s not a full-on reversal.
What to Watch: Bullish price action around this support level, such as a higher low or strong buying volume, could confirm the pullback idea. But if we break below 143.00, the bears may still be in full control, so caution is key.
Markets are unpredictable; use stops and manage your risk. This isn’t a guarantee, just one possible play based on the current setup.
After 48 hours of nonstop downward movement in USD/JPY with barely any pullbacks, the pair is looking a bit stretched. We’re currently sitting at a key support level, and I’m seeing signs that we could get a relief pullback soon—not a full reversal,
What I'm Watching:
Liquidity and Fair Value Gap: The market seems imbalanced between 143.80 and 144.50. With no upward movement recently, this area could attract some buying pressure.
Support Level: We’re currently hanging around 143.00, a decent support level. If we hold above it, I expect the price to return to that liquidity zone.
The Setup:
Pullback Target: If the price holds here, we could see a pullback toward the 144.500-145.050 range.
Stop-Loss: If things don’t go as planned, a stop below 142.80 would be a good idea to manage risk.
Why I'm Eyeing This:
The market’s been overly one-sided, with heavy selling and no meaningful pullbacks. Combine that with the imbalance and fair value gap in the 144 zone, and it feels like the pair is overdue for some correction, even if it’s not a full-on reversal.
What to Watch: Bullish price action around this support level, such as a higher low or strong buying volume, could confirm the pullback idea. But if we break below 143.00, the bears may still be in full control, so caution is key.
Markets are unpredictable; use stops and manage your risk. This isn’t a guarantee, just one possible play based on the current setup.
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