USDJPY MARKET ANALYSIS

 Happy December traders, it's the last month of the year and I hope you're all doing well. Into the markets today I am watching out for USDJPY where price dropped and broke below a major H4 & daily demand zone at 151.800 & 150.730 and formed a lower low on H1 & H4 at 149.500. Price retraced to retest the broken demand as new supply before a potential continuation of the drop lower. Price retraced to 150.730 missing my sell limit at 150.800 and dropped by a strong H1 bearish engulfing candle. Took sell positions during London session at 150.350 with SL at 150.800. Setup taken is a rally base drop, a reversal setup and my target is at 147.300.

Price dropped 200 pips to 148.700 forming new lower lows confirming the bearish sentiment. Price then retraced and rallied back to supply at 150.730 which is the origin of the previous major drop to 148.700. Price filled the 1st minor H1 range from the major H4 & daily supply zone to the H1 & H4 low and back to the major H4 & daily supply zone. Price formed rejections with candle closes below supply followed by a strong drop. Price has still not yet broken the H1 & H4 low at 149.500 however I still anticipate a potential continuation of the drop lower into next week.