The currency pair is preparing for the next upward rally.
Sellers remain dominant in the market at the moment.
USDJPY Weekly Price Analysis – August 9
The USDJPY pair is preparing for the next upward rally as the Yen price faces the resistance trend line. The pair gave a bullish breakout from the daily $147.90 level, suggesting buyers are making a recovery attempt. However, the price may soar higher and break up the $161.95 high mark if the bulls could add more aggression to their buying actions in the market. The target might be the $165.00 upper resistance value, resulting in a buy signal for the long traders.
USDJPY Market
Key Levels:
Resistance levels: $145.00, $146.00, $147.00
Support levels: $130.00, $129.00, $128.00
USDJPY Long-term Trend: Bearish (Daily)
The USDJPY pair is preparing for the next upward rally and indicates a bearish momentum in its long-term view. The sustained bearish pressure on the currency pair to a $141.68 low mark in the past few days has sustained the Yen price below the supply trend levels in its recent high.
Meanwhile, the Yen is about to experience a new trend as the currency pair has just resumed its rising pattern preparing for the next upward rally, but has not yet reached its goal.
Today, the USDJPY price is facing resistance and trading at the $147.90 correction level below the EMA-50 as the daily chart resumes, confirming the bulls are coming into the market to stage a play.
Therefore, if the bulls should increase their tension in the market, the price tendency may likely break the $161.95 resistance barrier, resulting in an intraday gain for the buy traders.
In addition, the daily stochastic indicates an upward trend, suggesting that the buy investors may likely continue with the bullish correction pattern to break up the $161.95 supply value which might further extend the USDJPY price to reach the $165.00 upper resistance mark in the coming days, as it prepares for the next upward rally in its long-term outlook.
USDJPY Medium-term Trend: Bearish (4H)
USDJPY is in a bearish momentum in its medium-term view. The pair is preparing for the next upward rally as it resumes the new rising pattern but has not yet reached its goal. The price bar is below the moving average, indicating a bearish trend.
The high order from the sell traders at the $144.14 low value in the previous action has made the currency pair stay below the supply trend line in its recent high.
The market value of USDJPY jumped to the $147.63 high level above the EMA-50 shortly after the commencement of the 4-hourly chart today, indicating that the bulls are preparing for the next upward rally and positive sentiment is returning to the market. Thus, buyers must add more pressure to their activities to move the market beyond the current price level.
In addition, the USDJPY market indicates more upside possibilities as shown by the daily stochastic pointing upwards; we can certainly expect more gains and strength from the Yen.
As a result, the pair may likely grow to retest the $161.75 resistance level and further extend to a $165.00 upper resistance level in the days ahead as it prepares for the next upward rally in its medium-term time frame.
Note: Forexschoolonline.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.
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