USDJPY: Bulls and Bears Momentum at Equilibrium Level

The currency pair is on ranging movement both in the long-term and medium-term perspective.

Patience is required at this period.


USDJPY Weekly Price Analysis – September 3

Should the buyers increase their momentum, the resistance level of $111.106 may be retest. An increase in the bear’s pressure may decrease the pair below the support level of $109.113.

USDJPY Market
Key Levels:

Resistance levels:   $111.000, $111.005, $111.010
Support levels:       $107.424, $107.420, $107.416

USDJPY Long-term Trend: RangingAt the moment USDJPY is in a sideways market in its long-term outlook. The bears have been trying to break down the support level of $109.113 but couldn’t. Also, the bulls are trying to break up the resistance level of $111.106 but the level holds.

The bears increased momentum dropped the price to $109.906 in the support area before the end of yesterday’s session as the pair returned back within the range.

Today’s daily opening candle at $109.911 was bullish as the bulls remained dominant in the market. USDJPY further rises to $110.073 in the resistance area.

Price is above the two EMAs which are glued together and the signal of the stochastic oscillator points up at around level 66%; an indication of an upward momentum within the range in the long term.

USDJPY is ranging and trading between $111.616 in the upper resistance area and $107.424 in the lower support area of the range. Patience coupled with a retest is needed before a position is taken.

USDJPY Medium-term Trend: RangingThe currency pair continues in a range-bound market in its medium-term outlook. The bearish momentum returned within the range yesterday as the price was dropped down to $109.882 in the support area within the range before the close of yesterday’s session.

The 4-hourly opening candle today at $109.886 in the resistance area is bullish. This further increase to $110.072 in the resistance area. An indication that the price of the Yen is in a bullish momentum within the range.

Activities from the buyers further move the price of USDJPY up to $110.053 in the resistance area after which the sellers took over and drop the price down to $110.006 in the support area within the range.
The price which is above the two EMAs suggests that the buyers are in control of the market as at the time of writing this article.

Meanwhile, the stochastic signal pointing down at around level 26% in the oversold region implies that USDJPY might likely encounter a trend reversal in the nearby days in the medium-term.

The Yen is in consolidation and trading between $110.446 in the upper resistance area and $109.108 in the lower support area of the range. A breakout at the upper resistance area or breakdown at the lower support area followed by a retest may occur hence patience is required to allow this to happen before a position is taken.

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