Market Overview: DAIJPY Faces Key Resistance Amid Strong Momentum

Summary
• DAIJPY formed a bullish engulfing pattern at 155.80, suggesting short-term buying pressure.
• RSI reached overbought territory above 70, indicating a potential near-term pullback.
• Volatility expanded through Bollinger Band breaches as price pushed above 156.05.
• Volume surged over 68,000 during the 06:30–07:30 ET window, confirming breakouts.
• Key support at 155.80 and resistance at 156.11 were tested multiple times during the 24-hour window.

Dai/Yen (DAIJPY) opened at 155.69 on 2025-12-17 at 12:00 ET, reached a high of 156.27, a low of 155.58, and closed at 156.01 on 2025-12-18 at 12:00 ET. Total 24-hour volume amounted to 247,240, with turnover reaching approximately $37,291,306, assuming an average price of ¥155.8.

Structure & Formations

Price tested key support at 155.80 and resistance at 156.11 multiple times during the 24-hour window. A bullish engulfing pattern formed at 155.80, signaling renewed buyer interest, while a bearish divergence appeared in the 5-minute chart near 156.27, suggesting caution ahead of 156.25. A doji at 156.05 indicated indecision near a recent high, with price failing to reclaim that level after initial gains.

Moving Averages and Momentum

The 20-period and 50-period moving averages on the 5-minute chart crossed above 155.90, confirming an upward bias. Daily 50/100/200 EMA lines showed a flattening trend, indicating mixed sentiment across longer timeframes. MACD crossed above zero, reflecting positive momentum, while RSI pushed into overbought territory above 70, suggesting a potential near-term correction.

Volatility and Bollinger Bands

Volatility expanded as price broke above the upper Bollinger Band at 156.05, reaching as high as 156.27. The 5-minute chart saw a notable contraction before the breakout, increasing the probability of a continuation move. Price closed just below the upper band, showing strong momentum but with a risk of mean reversion.

Volume and Turnover

Volume surged over 68,000 during the 06:30–07:30 ET window, confirming the break above 156.11. However, turnover dipped slightly at 156.27, indicating a possible lack of follow-through buying. A divergence between price and volume at the close of the 24-hour period raised concerns about exhaustion.

Fibonacci Retracements

A key 61.8% retracement level at 156.03 held as support, with price rebounding from this level toward 156.15. On the daily chart, 38.2% and 61.8% retracements aligned with the 155.80–156.11 range, reinforcing the significance of the consolidation.

Dai/Yen may face immediate resistance at 156.25, with a potential retest of 155.80 ahead if buyers falter. Investors should closely monitor volume and RSI for early signs of a reversal. A failure to hold above 156.05 could trigger a pullback, while a break above 156.27 could extend the upward trend.