The USD/JPY currency pair is experiencing unique market tension. The price has reached a rarely seen DML monthly resistance level, which could inhibit further gains. Simultaneously, a strong support zone has formed below the current price, created by a confluence of three key elements: a historical anomaly, current weekly supports, and an unclosed price gap. The upcoming release of the FOMC meeting minutes could be the catalyst that determines whether the market will test the lower support zone or react at the resistance.

Why does the market sometimes ignore established patterns? In our latest case study, we reveal how a unique anomaly on the USDCHF pair defined a critical price zone where the market is currently trading. Discover how analyzing the 5% of non-standard events, made visible by DML levels, can give you a deeper insight into market structure and an informational edge.

The USD/JPY currency pair has reached the key, long-awaited "Khaki" price level from the DML methodology, placing the market at a pivotal turning point. The analysis suggests this zone could act as a significant resistance, potentially initiating a downward move towards the next pending level, "Sienna3," located around 141.50. The realization of this scenario is heavily dependent on the macroeconomic context, particularly a potential policy easing by the U.S. Federal Reserve (Fed) and any policy normalization by the Bank of Japan (BoJ).

The market commentary focuses on the EUR/USD pair and the key level of 1.1515, which was recently broken as a former DML RED support. The current price increase is a retest of this level, leading to two scenarios. The first, classic view assumes that the former support will act as new resistance, leading to declines. The second, more probable scenario suggests that the breakdown was a "bear trap" designed to mislead sellers. In this view, a return to and break above the 1.1515 level will be a signal of strength and a continuation of the uptrend.