USDJPY: Possibility of More Downsides

USDJPY is slightly in a bullish trend zone both in the long-term outlook and in the medium-term outlook.
The pair is experiencing more pulls from the sellers trying to gain grounds, patience needs to be exercised.

USDJPY Weekly Price Analysis – July 8
USDJPY is facing an increase in selling pressure and may continue in the same direction if it breaks the $131.135 low level. Therefore, should the bears increase their momentum, the support level at $126.361 may be retested.

USDJPY Market
Key Levels:

Resistance levels: $137.000, $137.100, $137.200
Support levels:  $131.400, $131.300, $131.200

USDJPY Long-term Trend: BullishThe USDJPY pair still remains in the bullish trend zone in the higher (1D) time frame. The sustained bullish pressure pushed the pair up during yesterday’s session to $136.221 and closes at the same price in the resistance area.

We’ve also more or less run out of time for the bulls to take over again, so it seems likely that the bears are about to take over and push us down as the daily chart opens today at the $135.702 support level.

Therefore, if the bears increase their tension in the market, the price tendency will drop below the key levels.

The Yen is initially down at a $135.323 low level at the present; with the price trading above the EMA-50 and below the EMA-9 suggests the weakness in the strength of the bulls as the sellers are coming in to gain more ground in the market.

However, a drawdown is noticed as the momentum indicator shows the price signal is also moving downwards in the market at level 53% in the overbought region, this may compel an increase in the seller’s activities in the market, and the$126.361 support level may be the target as the journey down south continues in its long-term perspective.

USDJPY Medium-term Trend: BullishOn the 4-hourly chart, the market slightly is in an upward move. The bullish candle at the $136.042 resistance level during yesterday’s session sustained the bullish momentum up.

The sellers came in and drop the price down to the $135.953 support level as the 4-hourly chart opens today.

The impulse move by the sellers further decreases the price of USDJPY down to a $135.325 low level which is below the EMA-9 and a bit above the EMA-50, an indication of a slight weakness in the strength of the bulls.

Meanwhile, the price of USDJPY is pointing down at around level 69% in the overbought area. This indicates that the price may likely continue in the same direction and in this case a downtrend in the days ahead in its medium-term outlook.

Hence, sellers can take a position at the key areas.

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