Market Overview: Chainlink/Yen (LINKJPY) on 2025-12-21

Summary
• Price swung between 1970–2004 JPY, closing near 1981 JPY after a volatile 24-hour period.
• Volume spiked during sharp declines, with divergence between turnover and price in late ET hours.
• A bullish engulfing pattern emerged post-12:00 ET, suggesting short-term buying pressure.
• RSI reached oversold levels (~25) during the lowest 1970s, hinting at possible short-term bounce.
• Bollinger Band contraction observed in early ET hours, followed by a volatility expansion post-08:00 ET.

Chainlink/Yen (LINKJPY) opened at 1986 JPY on 2025-12-20 12:00 ET, reached a high of 2004 JPY, and closed at 1981 JPY as of 2025-12-21 12:00 ET, with total volume of 933.96 and turnover of 906,229 JPY over the 24-hour period.

Structure & Formations

Price formed a bullish engulfing pattern around 09:30–09:45 ET, suggesting a short-term reversal after a sharp decline. A doji appeared near 1981 JPY, indicating indecision, with key support levels forming at 1970–1975 JPY and resistance near 1990–1995 JPY.

Moving Averages

On the 5-minute chart, the 20-period moving average dipped below the 50-period MA, signaling potential bearish momentum. Daily moving averages (50, 100, 200) show the price has remained below all three, reinforcing the bearish bias.

Momentum Indicators

MACD showed bearish convergence during the decline to 1970 JPY, while RSI reached oversold territory (~25), suggesting a potential rebound. However, a prolonged stay near these levels could signal deeper weakness.

Volatility & Bollinger Bands

Bollinger Bands narrowed in early ET hours, followed by a sharp expansion after 08:00 ET as volatility returned. Price hovered near the lower band during the 1970–1975 JPY phase, consistent with bearish pressure.

Fibonacci Retracements

Key retracement levels (61.8% at ~1980 JPY, 38.2% at ~1988 JPY) were tested multiple times, with the 61.8% level acting as a short-term floor.

The next 24 hours may see a test of 1970 JPY support or a bounce toward 1988 JPY. Traders should watch for volume confirmation on any directional move, as divergences could signal further uncertainty.