USDJPY Dominated by the Bulls - 18th Feb 2021

The USDJPY pair has seen a strong bull trend today. Unexpectedly, the pair climbed to a point which was not easily predictable and it is expected to climb even higher in the coming week. If the Bulls continue pushing this pair, new resistance levels are expected to form soon. The pair might even test an unexpected $110 level which would be disastrous for the Bears. 

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USDJPY has been moving upwards since the last 2 days and now as we move towards February 18, this pair is expected to break the resistance level at $105 and move up till it touches $110 but having said that, Forex is a risky market which is not easy to predict. With Bulls trying to maximize their profits, a strong Bearish role is also inevitable. 


If the Bears are successful in breaking the potential new support level, this pair might go down to $100 level in the longer run but that won't be an easy target. To do that, millions of people will have to take the risk of selling while standing at a point which is most likely to go higher in the coming days.

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As a trader, I've managed to come up with some important points that must be observed if you're planning to sell soon. The first point would be $105, if this resistance level breaks, DO NOT sell for at least the next few hours. The next important resistance level would be close to $109, it is likely to stop the smooth climbing of this pair and turn things in favor of the Bears. 

On the other hand, if you're a Bull thinking of buying, now is the right time to do it. The pair is expected to rise a few dollars before declining, after which it is expected to test the $100 support level. If it goes below that, a strong Bearish trend would be inevitable. But like I said earlier, at this point in time, a Bearish trend seems close to impossible.

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If we look at the last month and predict the trends of the coming month, the bigger picture shows a bearish trend eventually. In January, the pair was strongly influenced by the Bears but the trend couldn't hold for much longer and eventually the Bulls took over. While this has been the case last month, in the next two weeks, the trend is expected to move in the opposite direction but with strong support levels, helping it to maintain its upward journey. 

Let's see what happens, till then do let me know what you think about the USDJPY pair in the comments section below!


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