USDJPY is likely to face more pressure from the bears.
The bearish momentum might possibly drop the Yen price to a low at $130.000 lower supply trend line.
USDJPY Weekly Price Analysis – May 12
The USDJPY pair may likely drop further to continue its bearish movement if the bears could prove stronger and close the daily candle below the $132.264 support level, the Yen might further decrease to the $130.000 lower support value and beyond.
USDJPY Market
Key Levels:
Resistance levels: $150.000, $150.100, $150.200
Support levels: $133.000, $132.000, $131.000
USDJPY Long-term Trend: Bullish
Analyzing the daily chart above, we can clearly see that the USDJPY price is trading above the moving average lines, this means that the momentum is in a bullish market zone in its long-term outlook.
The increased momentum from the buy traders at the $135.470 supply value during yesterday’s session has made the Yen price remain in a bullish market zone in its recent high.
The bulls lost momentum from here, as the bears started to step back into the market and dropped the market price of USDJPY lower to the current trading level at the $135.208 support mark above the two EMAs as the daily chart opens today. An indication of an uptrend in the context of the strength of the market.
An additional force from the short traders further drove the Yen price down to the $135.064 support value as the bears continue with the journey down south. Thus, a retest to the $130.775 low value is possible if the bears could add more effort to their selling motives in the market.
Furthermore, the USDJPY price might possibly drop further as indicated by the daily signal which is in a downward direction. This means that further downward move is likely, so we can expect the bears to increase the negative move pattern to possibly reach the $130.000 lower support level in the nearby days in its higher time frame.
USDJPY Medium-term Trend: Bullish (4H Chart)
The USDJPY market price also trades in an upward trend market in its medium-term outlook. The pair’s market price is dropping even above the supply levels as we can see from the chart below.
The sustained bullish pressure at the $135.360 value during yesterday’s session has made the pair remain in a bullish market in its recent low.
The bears overrode this trend and dropped the price of USDJPY down to the $135.261 value above the EMA-50 but below the EMA-9 as the 4-hourly session begins today.
The sell traders continue with the low-dips move and dropped the Yen price down to the $135.146 support level as the bears continue to dictate the market conditions at the present.
Hence, further downside is certain as shown by the price signal which is in a downtrend. As a result of this, the bearish price action may likely extend the price of USDJPY down to the $130.000 lower support trend line in the days ahead in its medium-term time perspective.
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