USDJPY: More Downsides Possible

The long-term and the medium-term are both in an upward momentum
The bulls may likely have temporal control in the market soon.

USDJPY Weekly Price Analysis – July 15
The price may continue its movement downside if the daily candle closes below the $134.740 support level, the support levels of $134.266 and $131.491 may be the target.

USDJPY Market
Key Levels:
Resistance levels: $139.300, $139.350, $139.400
Support levels: $135.400, $134.300, $133.200

USDJPY Long-term Trend: BullishUSDJPY is in an upward move in its long-term perspective as can be seen undeniably from the daily chart. The sustained bullish pressure pushed the pair up to $139.388 and closes at $138.941 high levels respectively during yesterday’s session.

The bulls lost the momentum, as the daily chart opens today with the formation of a bearish pin bar candle at the $138.941 support level as the sellers resume dictating the market at the moment.

The price action of the Yen which is down at a $138.559 low level above the two EMAs, suggests the bears are making in-road to the market.

Likewise, the price indicator pointing down at around level 90% in the overbought region means that the momentum in the price of the pair is in a downtrend this may compel the sellers to continue the downside move in the coming days in the higher time frame.

USDJPY Medium-term Trend: BullishThe price movement of USDJPY is currently seen to be in the bull’s direction in the medium-term outlook. The sustained bullish pressure moved the pair up to the $139.228 resistance level after which the sellers in-road briefly and moved the price down to the $138.804 support level during yesterday’s session and sustained it.

The price action drops significantly to the $138.562 support level as the 4-hourly chart opens today.

The market value of USDJPY which is initially down at a $138.562 low level above the moving averages suggests that the bulls are getting weaker and the sellers are set to move the price down.

Also, the stochastic indicator which is pointing down at the overbought region means that the pair will soon resume the downward move soon in the days ahead in the medium-term perspective.

Therefore, sellers need to wait for this action to begin before placing their order.

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