USDJPY Possible Reversal to the Upside Is Imminent

USDJPY is currently facing more pressure from the bears.
A possible reversal at the $140.94 support level is imminent.

USDJPY Weekly Price Analysis – December 15
At the moment the USDJPY pair is facing the downside; a possible reversal at the $140.94 support level is imminent as the market is oversold. Meanwhile, the pair might finish the downward correction and start reversing soon if the bulls could exchange hands with the bears at the current support of $140.94 level. If this is achieved, the target may be the $152.00 upper resistance trend line.

USDJPY Market
Key Levels:
Resistance levels: $144.00, $145.00, $146.00
Support levels: $141.00, $140.00, $139.00

USDJPY Long-term Trend: Bearish
Analyzing the daily chart above, we can clearly see that USDJPY is trading below the EMA-50, this means that the momentum is in a bearish market zone and a possible reversal at the current support is imminent in its long-term outlook.

The sustained bearish pressure at the $142.62 low value during the previous session has made it possible for the price to remain in a downward trend in recent times.

The downward trend continues today, as the daily chart opens with a bearish candle at the $142.50 support level, below the EMA-50. This is an indication of a more bearish impact on the currency pair.

The impulse move from sellers further dropped the price of USDJPY down to the $140.94 support level as at the time of writing this article. Should the bulls change their orientation and exchange hands with the short traders at the mentioned support level, a possible reversal to the upside is imminent.

Additionally, the selling pressure has been exhausted, and a price reversal to the upside at the $140.94 low level is imminent, as indicated by the daily stochastic, which is pointing down at around 9% in the oversold region.

This will bring the emergence of the long traders to the market to resume the bullish trend, if this is achieved; the $152.00 upper resistance value might be the target in the near days in its long-term scenario.

USDJPY Medium-term Trend: Bearish
USDJPY continues in a downtrend market, meanwhile, a possible reversal to the upside is imminent 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 down to the $142.04 support level during yesterday’s session; this has made it easier for the USDJPY pair to stay below the supply level in its recent low.

Today’s 4-hour chart opens with a bearish candle at the $141.45 support value below the EMA-50, this suggests that the sellers’ inflow is higher and more active in the market at the present.

However, a possible reversal at the $141.45 low value is imminent as the pair has reached the oversold region of the daily stochastic, if the buy traders should increase their price actions and all the current support level holds, a psychological key level at the $152.00 supply level might be reached soon in its medium-term time frame.

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