USDJPY: More Downsides Possible, Watch for Sell

USDJPY is facing more pressure from the bears.
Overall market sentiment regarding the currency pair remains bearish.

USDJPY Weekly Price Analysis – August 5
The USDJPY may likely continue its bearish movement if the daily candle closed below the $132.500 level, the support levels of $131.597 and $131.491 may be the target.

USDJPY Market
Key Levels:
Resistance levels: $136.150, $136.250, $136.350
Support levels: $131.500, $131.400, $131.300

USDJPY Long-term Trend: BearishAnalyzing the daily chart above, we can clearly see USDJPY trading below the two moving averages, this means that the momentum is in a bearish market zone in its long-term outlook. The bulls made a rise to the $134.550 resistance level before the end of yesterday’s session.

The bulls lost the momentum from here, as the bears started to step back in and pushed the market lower to the current trading level at $133.853 low level as the daily chart opens today

Impulse move from the sellers further dropped the market value of the Yen down to a $132.876 low level below the moving averages; this suggests a downward momentum in the price of USDJPY at the present. The price bars which are below the moving averages make it capable of falling to the downside.

However, continuation to the downside is certain as the stochastic indicator also shows the price pointing downwards, we, therefore, expect the sellers to continue the bearish trend in the coming days in its long-term perspective.

USDJPY Medium-term Trend: Bearish
USDJPY continues in a downtrend market in its medium-term outlook. The pair’s market price is dropping as we can see from the chart below. The sustained bearish pressure dropped the pair further down at the $133.559 support level during yesterday’s session.

The sellers move the price down to the $132.876 support level shortly after the 4-hourly chart opens today as the bears continue to dictate the market.

In like manner, the stochastic oscillator pointing down at around level 57% implies that the price of USDJPY is in a downward move and may likely continue in the same trend in the nearby days in its medium-term perspective.

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