USDJPY: Sitting At Resistance

USDJPY trade continues in its bullish momentum and may breakout the upper resistance area.
Trend reversal might likely occur due to the formation of the spinning top bar.

USDJPY Weekly Price Analysis – June 25
Should the bulls increase their momentum, the resistance level at $111.039 may be retest.

USDJPY Market
Key Levels:

Resistance levels:   $110.850, $110.860, $110.870
Support levels:       $104.365, $104.355, $104.345

USDJPY Long-term Trend: BullishThe currency pair is in an uptrend in its long-term outlook. The impulsive move by the bulls on June 23rd at $111.106 in the resistance area sustains the bullish momentum during yesterday’s session before the brief return of the bears which dropped the price of the Yen down to $110.685 in the support area.

The daily chart opens today at $110.841 in the resistance area with the formation of a spinning top bar which implies a trend reversal might occur in the future.

The price of USDJPY is initially up at $110.983 in the resistance area above the two EMAs, this suggests that the momentum in the price of the Yen is in an uptrend.

Hence, the stochastic oscillator signal pointing down at around level 87% in the overbought region indicates that the momentum in the price of USDJPY might likely experience a trend reversal in the days ahead.

USDJPY Medium-term Trend: BullishUSDJPY is now finding its way down as the bears gradually staging a return to the market.

A bearish inverted harmer at $110.932 opens today’s 4-hourly chart in the support area this signals a trend reversal.

Price is initially down at $110.810 in the support area below the two EMA-9, an indication of a slight weakness in the strength of the bulls.

However, the stochastic signal pointing down at around level 50% in the overbought region suggests that the currency pair may encounter a change in trend sooner or in the days ahead in the medium term.

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