USD/JPY (UJ) Analysis (Daily Timeframe)

The USD/JPY pair has been following a clear market cycle, transitioning from distribution to markdown, followed by accumulation, and now entering a bullish markup phase, showcasing strong bullish momentum.

Key Observations:

Market Phases:

• Distribution Phase: The bullish move ended near the 162 level, where sellers gained control, initiating a markdown.
  
• Accumulation Phase: After a significant markdown, UJ found a base around the 140 level, forming an accumulation phase with demand coming back into the market.
  
• Current Phase: The pair has now broken out of accumulation and is in a bullish move, with a well-defined structure of higher highs and higher lows.
  

EMA Surfing and Momentum:

• The price is currently surfing upward along the EMAs, showing strong trend-following behavior with EMAs acting as dynamic support.
• The tightening of the EMAs during the accumulation phase has now expanded, supporting the continuation of the bullish move.
  

Scenarios to Watch:

• Continuation to Targets:
  USD/JPY could continue its bullish momentum toward the short-term target near 159 and potentially the medium-term target around 162. This aligns with the ongoing strength in the USD and the current bullish structure.
  
• Pullback for Reaccumulation:
  A potential retracement could act as a reaccumulation phase, gathering liquidity before resuming the uptrend.