#USDJPY Weekly Analysis for December 8 to 12 Trends and Insights

## USDJPY Breaks the Uptrend Line

The recent movement in the USDJPY currency pair has captured the attention of traders and analysts alike, particularly as it has broken through a significant uptrend line that had been in place for some time. This break is noteworthy as it may signal a shift in market sentiment and potential changes in the price dynamics of this currency pair.

### Potential Pullback to 155.75

As the price action unfolds, a pullback to the level of 155.75 is anticipated. This level is crucial as it may act as a resistance zone where sellers could emerge, leading to a rejection of price movements above this threshold. Such a rejection could set the stage for further downward movement, particularly if market participants perceive this level as a significant barrier.

### Fair Value Gap (FVG) Considerations

In the context of price action analysis, the concept of a Fair Value Gap (FVG) becomes relevant. This gap often signifies an area where price has moved rapidly, creating an imbalance between buyers and sellers. Should the price indeed pull back to 155.75 and face rejection, it could then target this FVG, which is likely to be filled as traders look to capitalize on price corrections. The filling of this gap could provide a clearer pathway for the USDJPY to continue its downward trajectory.

### Target Levels: 153.79 and 152.50

If the price successfully rejects at 155.75 and heads lower, the first target could be around 153.79. This level may serve as an initial support area where buying interest could emerge, but if it fails to hold, the next significant target would be at 152.50. This latter level is particularly important as it represents a more substantial support zone that could influence the overall trend of the USDJPY pair.

### Conclusion

In summary, the recent break of the uptrend line in the USDJPY suggests a potential shift in market dynamics. A pullback to 155.75 could lead to a rejection and subsequent movement towards filling the FVG, with critical targets at 153.79 and 152.50. Traders will be closely monitoring these levels as they navigate the evolving landscape of this currency pair, looking for opportunities to capitalize on potential price movements.

Chris

Thetradingmentors | Trader