USD/JPY has been consolidating since the start of October, just below the 150 Yen mark and has risen above 150 Yen once. Soon after this we saw a massive drop in price as the market became bearish all of a sudden. Since then the price stayed above 148 Yen and slowly gained value getting closer to 150 Yen without reaching that price.

The blue line represents price at 150 Yen, and the price has gotten close and not yet reached it. Price is most likely going to be rejected by the 150 Yen price mark as well as the red Supply Zone. Sellers are looking strong.

Once price starts to move down and show a clear direction open a short trade. This could be a large downward move in price as the 150 Yen price mark is a very strong resistance level and is a nice round number which helps in trading psychology.

As this could result in a large drop in price, price may fall sharply for the next week or so. This means that longer term traders can hold their position for longer than usual and make higher profits. Look at the Heikin Ashi candlesticks to help judge this decision.

(Part 2) 26/10/2023

Price broke above the 150 Yen price mark. A big bearish engulfing candle formed with a large sell-off below the 150 Yen price mark before rising back above the 150 Yen price mark and slowly continue to fall back down towards it. Shorting still seems like a strong trade decision as the market is showing good signals to sell.