Market Overview for Chainlink/Yen (LINKJPY) on 2025-10-18

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• Chainlink/Yen (LINKJPY) posted a bullish reversal from a 24-hour low of 2453.0 to close near 2552.0, signaling potential short-term strength.
• Momentum shifted positively after 04:00 ET, with RSI showing strong upward divergence from earlier bearish levels.
• Volatility expanded significantly, with price breaking above the upper Bollinger Band, suggesting heightened trader interest.
• Notional turnover surged during key breakouts, validating price action and confirming accumulation.
• A bullish engulfing pattern formed near 2480.0, which may signal a short-term trend change.

Price Action and Volume Overview

Chainlink/Yen (LINKJPY) opened at 2453.0 on October 17, 2025, and reached a low of 2453.0 before a strong rally pushed the price to a high of 2562.0 by early morning on October 18. The pair closed at 2552.0 at 12:00 ET, showing a robust 24-hour performance. Total volume was 4,311.38, with notional turnover rising to support the price action, particularly around key breakout levels.

Structure & Key Levels

The 15-minute OHLC data revealed a key support cluster around 2477.0 to 2483.0, with a bullish engulfing pattern forming after a bearish decline. Price bounced off this support and pushed higher, testing resistance at 2520.0 and later at 2540.0. A potential overhead resistance exists at 2562.0, which was the highest point during the session. A breakdown below 2480.0 may retest the 2453.0 level again, which appears to be a meaningful support.

Moving Averages and Momentum

On the 15-minute chart, a bullish crossover between the 20 and 50-period moving averages occurred during the morning hours, supporting the reversal. RSI climbed into overbought territory after 06:00 ET, suggesting strong short-term momentum. MACD showed a positive divergence, aligning with the price breakout. On the daily chart, the 50-period MA is trending upwards, reinforcing the potential for further gains if the current trend continues.

Volatile Conditions and Bollinger Bands

Volatility expanded significantly during the session, with the price moving beyond the upper Bollinger Band at multiple points. This expansion often precedes a consolidation phase, where price may retrace slightly before resuming the upward move. The recent contraction in volatility between 03:00 and 04:00 ET was followed by a sharp breakout, suggesting that the rally was anticipated and well-supported by volume.

Backtest Hypothesis

The recent bullish reversal aligns with the principles of a “Bullish Engulfing” strategy, where a larger bullish candle follows a bearish one, confirming a reversal in sentiment. This strategy, when applied over a three-day period, has historically shown strong performance, with a high winning rate and positive risk-adjusted returns. The current pattern, supported by RSI divergence and strong volume, could serve as a viable entry point for short-term traders. The strategy's success hinges on confirming the pattern with strong volume and momentum, which is evident in today's session.