FX.co ★ USD/JPY

ANALYSIS USDJPY Saturday,07/11 Good evening. Let’s analyze USDJPY movement using a supply and demand approach and the Stochastic Oscillator to find precise entry opportunities. From the chart it appears the market is in a medium-term uptrend, where price is forming higher highs and higher lows — a sign that buying pressure still dominates overall. First, let’s map the supply and demand zones that pivot this movement. The primary demand zone is around 156.097 — this is a strong base where price previously bounced sharply, indicating significant buyer accumulation. Above it there is a secondary demand zone at 157.137, which also serves as a price buffer during temporary declines. Meanwhile, the supply zone is clearly visible from 158.473 to 158.711, with the highest peak at 158.850. Price has attempted to break this area several times but has not managed to hold above it, indicating fairly strong selling pressure in that zone. Next, note the Stochastic Oscillator at 66.90, rising from a recent oversold area. It is not yet in the overbought zone, so upside room remains. The blue and red lines are moving upward and have not crossed downward, which confirms short-term momentum still favors buyers. However, its position above 50 is also a warning: if price fails to break the supply, a downward correction could occur at any time. Structurally, price is currently moving between the demand zone 157.137 and the supply 158.473. This is a consolidation area before the next directional decision. As long as price holds above 157.137, the main bias remains up. Conversely, a break below that demand zone would open the possibility of a deeper decline toward 156.097.

Trading Plan Primary scenario — Buy: Wait for price to drop and show rejection signals in the demand zone 157.137. Enter a long position when price action begins to bounce. Place stop loss below 156.957, slightly outside the safe zone. First target at 158.473, and if it breaks strongly, continue to 158.711 up to 158.850. The risk-to-reward ratio here is quite attractive and measurable. Alternative scenario — Sell: Prepare a short position only if price fails to break the supply zone 158.473–158.711 and a clear rejection appears. Place stop loss above 158.850. First downside target at 157.137, and if that demand zone is broken, continue to 156.547 down to 156.097. Important to remember: the market always has two possibilities. Wait for confirmation from price action before entering the market, don’t rush to chase price. Always manage risk so losses remain comfortable if the analysis is wrong. May your trading journey be disciplined and yield satisfying results.