USDJPY: Price Anticipates a Drop Soon

The currency pair anticipates a drop soon as the market is overbought.
Sellers may likely resume dominating the USDJPY market soon.

USDJPY Weekly Price Analysis – October 11

At the moment, the USDJPY remains positive. However, the Yen price anticipates a drop soon, as the buying pressure seems to have reached an exhaustion stage. The currency pair can collapse and break down the $139.57 support value if the bears could add more aggression to their selling actions in the market. The target might be the $137.00 lower support value, resulting in a sell opportunity for the short-term traders. Hence, sellers must wait for this action to take place before placing an order.

USDJPY Market
Key Levels:
Resistance levels: $147.00, $148.00, $149.00
Support levels: $139.00, $138.00, $137.00

USDJPY Long-term Trend: Bullish (Daily Chart)

The USDJPY price anticipates a drop soon as the bullish momentum on the pair is about to end in the higher time frame. The currency pair trades above the supply trend zone, indicating a bullish trend.

The sustained bullish pressure to a $148.37 high point in the past session has sustained the Yen price above the supply trend levels in its recent high. However, the trend is about to change as the price anticipates a drop sooner while the buying momentum threatens to subside.

The USDJPY price on the daily chart is trading at the $149.09 high mark above the EMA-50, indicating an uptrend. It could be seen that the pair is anticipating a drop soon as the bears are ready to take over the trend. Hence, a strong breakdown below the $139.57 support point would strengthen and confirm the bearish pressure on the pair.

In addition, the USDJPY market is around 99% of the daily stochastic, suggesting that the currency pair is overbought and anticipates a drop soon.

The emergence of short-term traders is crucial at any moment to drop the Yen price and this might reach as low as the $137.00 lower support level in the days ahead in its long-term outlook.

USDJPY Medium-term Trend: Bullish (4H Chart)

The USDJPY market in the medium term anticipates a drop as soon as the pair momentum reaches bullish exhaustion. The price bars are seen above the moving average of 50, indicating a bullish trend.

The pressure from the bulls at the $148.31 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 anticipates a drop soon as the price reaches bullish exhaustion at the $149.09 high mark above the supply levels shortly after the commencement of the 4-hourly chart today, indicating that negative sentiment is about to return to the market. Thus, sellers must add more pressure to their activities to move the market beyond the $139.57 low level.

In addition, the market value of USDJPY is pointing downwards around level 99% of the daily stochastic, suggesting the price is anticipating a drop soon. As a result, the emergence of the sell traders to resume the sliding move is pertinent and this might drop the Yen price to a $137.00 lower support level in the coming days as the Yen price anticipates a drop soon in its medium-term forecast.

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