Market Overview: Chainlink/Yen (LINKJPY) – Strong Rebound Amid Volatility

Summary
• Price tested key support at ¥2150–2151 and bounced into a bullish reversal pattern.
• Momentum indicators suggest easing bearish pressure with RSI approaching oversold territory.
• Volatility expanded after a consolidation phase, with volume aligning with upward moves.
• A 20-period moving average crossed below price, hinting at short-term bullish momentum.
• Bollinger Bands constricted mid-day, followed by a breakout above the upper band in late ET hours.

Chainlink/Yen (LINKJPY) opened at ¥2151.0 on 2026-01-16 at 12:00 ET and reached a high of ¥2193.0 before closing at ¥2187.0 on 2026-01-17 at 12:00 ET, with a low of ¥2142.0. Total 24-hour trading volume was 1,209.36 units, and notional turnover amounted to ¥2,629,312.23.

Structure and Momentum

Price found support at ¥2150–2151, forming a reversal pattern followed by a sharp rebound. The RSI approached oversold levels by early morning ET, suggesting bearish momentum was waning. A bullish divergence between RSI and price action appeared as price dipped while momentum bottomed, pointing to a potential reversal.

Volatility and Trend Direction

Bollinger Bands constricted between ¥2166–2171 before a breakout in late ET hours pushed price above the upper band. The 20-period moving average crossed below price, reinforcing a short-term bullish bias.

Volume and Confirmation

Volume surged during the late ET rebound, confirming strength in the upward move. Turnover and volume aligned with price action, indicating institutional or large-cap buyer interest. No significant divergence between price and volume was observed, suggesting the rally had strong conviction.

Key Resistance and Fibonacci Levels

The 61.8% Fibonacci retracement of the ¥2142–2193 move is at ¥2170, which has been a key magnet for price multiple times. The ¥2193 high is a near-term resistance, and a close above this level could signal continuation.

Chainlink/Yen appears to be testing its short-term equilibrium after a volatile 24-hour session. A sustained break above ¥2193 could see further gains, while a pullback below ¥2170 may trigger a retest of ¥2150–2151 support. Investors should watch for a confirmation of the 5-period bullish divergence for added confidence.