The USDJPY is preparing for the next drop.
Sellers may dominate the market soon.
USDJPY Weekly Price Analysis – October 4
Currently, the USDJPY pair seems preparing for the next drop as the market buying pressure is overbought on both sessions. The price may collapse and break down the $139.57 support value if the bears could set in and add more aggression to their selling actions in the market. The target might be as low as the $137.00 lower support value in the days ahead, suggesting a time to sell for the short traders.
USDJPY Market
Key Levels:
Resistance levels: $144.00, $145.00, $146.00
Support levels: $137.00, $136.00, $135.00
USDJPY Long-term Trend: Bearish (Daily Chart)
The USDJPY pair is preparing for the next drop as the buying pressure seems to end soon in the higher time frame. The price is trending in green below the moving average, indicating a bearish trend.
The sustained bearish pressure to a $142.96 low value on the currency pair in the past few days has added to Yen’s bearishness in its recent low.
The USDJPY price on the daily chart today is slightly below the EMA-50 at the $146.25 high level, indicating a bearish trend suggesting there is a tendency for the pair to drop further.
Hence, if the bears could add more strength to their selling tension, the USDJPY pair may begin its drop to hit the $139.57 low barrier, footing the potential to drop further as it prepares for the next drop.
In addition, the daily stochastic points upwards at around 93% in the overbought region, indicating that the Yen is preparing for the next drop as the market selling pressure is ending soon. Thus, the anticipated selling pressure might reach the $137.00 lower support level in the coming days as we watch the short traders preparing for the next drop in the long-term perspective.
USDJPY Medium-term Trend: Bullish (4H Chart)
Although the USDJPY is positive, the market structure shows that the par is preparing for the next drop, implying that the buying pressure will end soon in its long-term view. 
The intervention from the bulls to the $143.81 supply value in the previous action has made the price of USDJPY stay above the supply trend line in its recent high.
The market value of USDJPY at the $146.25 resistance level above the EMA-50 as the 4-hourly chart opens today suggests a bullish momentum in the context of the strength of the market.
However, a drawdown is noticed as the market price points downwards on the daily signal, implying that the USDJPY is preparing for the next drop. Thus, sellers must add more pressure to their activities to move the market beyond the current price level.
In addition, the market value of USDJPY is pointing downwards around level 93% of the daily stochastic, indicating the Yen is already overbought, compelling the sell traders to cluster around the market and drop the price. Hence, the USDJPY price may likely drop to a $139.57 lower support and extend to the $138.00 lower support level in the coming days in its medium-term outlook as we watch sellers preparing for the next drop.
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