USDJPY - Lack of Supply, Fueled by Hidden Demand

The USDJPY currency pair has recently experienced a significant surge in value, defying expectations based on visible supply signals. Despite the absence of apparent selling pressure, price action has broken through the last known supply area, indicating a shift in market sentiment.

Upon closer examination, it becomes evident that a previously identified demand zone has played a pivotal role in fueling the price increase. This zone, marked on the chart, represents an area where buyers have historically been active, and it has served as a catalyst for the recent rally.

Furthermore, indicators that monitor institutional activity on the market have been flashing bullish signals, suggesting that large players are accumulating USDJPY positions. This influx of institutional buying power has provided additional momentum to the upward trend.

With price action now trading above the previous supply area, the path of least resistance remains higher. Traders should be aware that the current rally may continue until a new supply zone is encountered or until the bullish momentum fades.