USDJPY: More Pumps Ahead

USDJPY looks bullish in the long-term outlook and in a bearish structure in the medium-term outlook.
There is a possibility of price reversal to the upside soon.

USDJPY Weekly Price Analysis – July 29
In case the current support level at $134.229 holds, the USDJPY price may rebound and increase to a $139.388 high level.

USDJPY Market
Key Levels:

Resistance levels: $139.400, $139.500, $139.600
Support levels: $134.200, $134.100, $134.000

USDJPY Long-term Trend: Bullish
The USDJPY pair is in a bullish trend zone in its long-term outlook. The sustained selling pressure dropped the market value of the Yen to a $136.320 low level during yesterday’s session.

The daily chart opens today on a bearish note at the $136.535 support level which is above the EMA-50 but below the EMA-9, this indicate that the trend is still in an uptrend. Staying above the EMA-50 will make it capable for the pair to rise to the upside easily soon.

The USDJPY has fallen below the 20% range of the daily stochastic. It means that the selling pressure is likely to end soon. This will compel the pair to resume its uptrend and begin to pump upsides to a significant level in the resistance area in the days ahead in its long-term view.

Buyers may need to wait for this action to commence before placing their orders in the long-term time frame.

USDJPY Medium-term Trend: Bearish
The currency pair is in a bearish trend zone. The moving averages are sloping upward indicating a downtrend.

The formation of a bearish candle at the $136.157 support level which is below the moving averages opens today’s 4-hourly chart.

The market price of USDJPY is initially down at the $134.197 support level below the two EMAs, this indicates a bearish movement in the price of the Yen.

However, the price may likely commence its upside movement soon as the market is already oversold. We, therefore, expect the buyers to resume the bullish movement sooner and take us to a high level in the nearest days in the medium-term perspective.