- December 26, 2025
- Posted by: EWGFX
- Category: Technical analysis
USDJPY is currently reacting from a clearly defined strong supply zone, where price previously formed a rounded top, signaling distribution and seller dominance. After the rejection, the market moved lower and entered a range, showing indecision between buyers and sellers. The highlighted buyer zone is acting as short-term support, while repeated tests of the mid-level indicate liquidity being built.
At present, price is forming an UTA (Upthrust After Accumulation)-type structure near resistance. If price breaks and holds above this level, continuation toward the upper marked target becomes likely, aligned with a liquidity grab above the range. However, failure or rejection from this zone would confirm seller strength again, opening the path toward the lower target inside the demand zone area.
Overall, this is a reaction-based market: confirmation above resistance favors upside continuation, while rejection favors a bearish move back into demand. Patience and level-based execution remain key in this structure.