USDJPY: Will the Bulls Appear Again?

The currency pair is having a bullish posture on the long-term outlook while the medium-term is in a bearish market zone.
Overall, the bears seem to be in control.

USDJPY Weekly Price Analysis – May 20
Further increase in the bears’ pressure may break down the $127.022 support level and this may decrease the price to $124.270 and $121.278 support levels respectively.

USDJPY Market
Key Levels:

Resistance levels: $129.720, $129.820, $129.920
Support levels:     $127.600, $127.550, $127.500

USDJPY Long-term Trend: BullishUSDJPY Has a bullish posture on the daily (1D) chart. The pair is also losing bullish momentum as it moved below the $128.005 support level; likewise, the bears caused a drop to the $127.023 support level during yesterday’s session. This, however, gave the sell traders the motive to influence the price tendency as the bears look to gain the market momentum.

With this, if the sellers increase their activities in the market the more, the price volume will drop below the key levels.

The market price of USDJPY continues in the down south way by the bears at the $127.794 support level as the daily chart opens today.

The reactions from the bears drop the market price of the Yen further down to the $127.725 support level as it journeyed down south.

The market value of USDJPY is initially down at $127.528 support level below the EMA-9 and above the EMA-50, an indication of an upward trend in the context of the strength of the market. More so, the bulls are getting weaker while the bears are ready to lower the price.

The stochastic oscillator is also pointing down at around level 16%, this implies that the price action is also moving downwards as we expect the sellers to continue the downward movement in the days ahead in the long-term perspective.

USDJPY Medium-term Trend: BearishThe bears are now progressing downwards as can be seen on the 4-hourly chart. The sustained bullish pressure pushed the pair up to the $128.944 resistance level during yesterday’s session and sustained it. The bulls lost the momentum as the sellers’ in-road to the market to drop the price action.

The price action drops significantly by the bears to the $127.768 support level as the 4-hourly chart opens today.

The sellers’ activities further drop the market price of USDJPY further down at the $127.737 support level as it continues its downward move.

The market value of the pair is down at $127.728 support value below the two EMAs; this implies that the bears are in control of the market at the present.

The pair which is pointing down around level 29% of the daily stochastic also indicates that the price of USDJPY is in a downtrend, and may remain or continue in the same direction in the days ahead before the buyers will come in and take over in the medium-term.

Therefore, sellers may take their position as desired at the moment.

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