USDJPY: May Decline to $121.278 Support Level

USDJPY looks bullish in the long-term outlook and in a bearish structure in the medium-term outlook.
Sellers may take their desired position in the key areas.

USDJPY Weekly Price Analysis – May 27
If the bears’ pressure breaks down the support level of $126.361, the price may decrease to the $121.278 support level.

USDJPY Market
Key Levels:

Resistance levels: $129.700, $129.750, $129.800
Support levels:      $126.600, $126.550, $126.500

USDJPY Long-term Trend: BullishThe currency pair is in a bullish trend zone in its long-term outlook. The bears caused a drop in the market value of the Yen to $126.551 as the low of the day in the support area during yesterday’s session.

This however gives the bears more strength to continue the downward movement as the daily chart opens today at the $127.074 support level.
The reaction from the sellers drops the price action of USDJPY further down to the $126.802 support level.

The market action of USDJPY is down at the $126.676 support level which is above the EMA-50 and below the EMA-9 at the time of writing this article. This suggests that the bulls are getting weaker as the sellers are set to dominate the market at the moment.

The stochastic oscillator signal pointing down at around level 9% in the oversold region suggests there may likely be a reversal in the trend in the days ahead and in this case a downtrend before the bulls take over in the long-term.

Therefore, sellers may take their desired position now before the buyers begin to step in.

USDJPY Medium-term Trend: BearishUSDJPY is in a bearish market zone in its medium-term perspective. The formation of a bearish candle at the $127.005 support level opens today’s 4-hourly chart.

The market price of USDJPY drops down to $126.782 support value as the bears remain dominant in the market.

The journey down south continues as the price decreases to the $126.767 support level.

The price action is now down initially at the $126.725 support level which is below the moving averages, this is an indication that the momentum in the price of the Yen is in a downward trend.

The signal of stochastic oscillator signal points down at around level 26% in the oversold region. It suggests the overall outlook shows downward momentum and may likely remain in a bearish movement in the nearby days in the medium term.

Hence, sellers may place their orders at critical areas before the bulls take over.

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.