USDJPY is facing more pressure from the bulls.
Overall market sentiment regarding the currency pair remains bullish.
USDJPY Weekly Price Analysis – February 24
The USDJPY pair might possibly resume its downward moves soon as the market is now overbought. If the bears could add more effort to the selling pressure and close the daily candle below the $127.760 support level, the Yen might further collapse to the $126.551 lower support value and beyond.
USDJPY Market
Key Levels:
Resistance levels: $130.000, $140.000, $150.000
Support levels: $127.000, $126.000, $125.000
USDJPY Long-term Trend: Bullish
As we can see from the daily chart, the currency pair is in an upward move in its long-term outlook. The bulls’ increased momentum pushed the price of the USDJPY up to the $135.228 supply value which was above the two EMAs in the resistance area during yesterday’s session and sustained it.
The bulls lost momentum as sellers dropped the market price of the pair from there down to the $134.993 support level as the daily chat opens today.
The bears’ pressure on the currency pair further dropped the Yen price down to the $134.550 low value above the two moving averages as the journey down south continued. This simply means that the sell traders are coming gradually to resume the low-dip moves and this may continue.
Hence, further downside is expected as shown by the daily stochastic which is pointing in a downward direction in the overbought region. This suggests that the buying pressure is exhausted, and this might enhance the emergence of more sellers to return the price of
USDJPY to the support zone. This might drop the price down to the $126.551 lower support level in the days ahead in its higher time frame.
USDJPY Medium-term Trend: Bullish
The USDJPY market price is in a bullish trend market in its medium-term outlook. The pair’s market price is above the two EMAs as we can see from the chart below. The sustained bullish pressure at the $135.039 supply level during yesterday’s session has sustained the price above the supply trend level in its recent high.
The currency pair found resistance at the $134.956 value above the resistance levels as the 4-hourly session begins today. This indicates an uptrend in the context of the strength of the market.
Meanwhile, there is a possibility for a trend reversal as the market now approaches the overbought region as indicated by the daily signal.
This implies that the bears may likely resume the downward moves soon and in this case, the upcoming bearish trend pattern might drop the price of USDJPY down to the $126.127 lower support value in the nearby days in its medium-term perspective.
Note: Forexschoolonline.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.
Leave a Reply