USDJPY: Price Could Drop More

Looks like the price will want to drop more.
The sell traders might take over the market soon.

USDJPY Weekly Price Analysis – September 20

The USDJPY price could drop more following the recent pressure from the sell traders as it begins to drop on the 4-hourly chart. Meanwhile, the drops could continue if the bears add more aggression to the selling pressure. If this is attained by the bears, the Yen price could drop more to retest the $141.68 support level and slide further to a $140.00 lower support value, suggesting a potential sell signal for the short traders.

USDJPY Market
Key Levels:
Resistance levels: $149.00, $150.00, $151.00
Support levels: $141.00, $140.00, $139.00

USDJPY Long-term Trend: Bearish

The USDJPY pair remains bearish on the daily chart and the price could drop more due to the high influence of the bears on the Yen. The price bars are below the EMA-50, indicating a bearish momentum.

The bears’ sustained pressure on the pair at the $140.44 low level also contributed to its bearishness in its recent price level.

Today, the USDJPY buyers caused the Yen price to rebound to a $143.94 high mark below the moving average as the daily chart resumes, indicating a bearish momentum. It is worthy of note that staying below the supply levels might cause the currency pair to drop further reaching the $141.68 support value if the current supply level at $143.94 holds.

Similarly, the price of USDJPY could drop more if the bears change their orientation and push harder the selling pressure. The pair could drop more to a $140.00 lower support level and beyond in the coming days, suggesting a good entry point for sellers in its higher time frame. Hence sellers should wait for this to happen before taking a position.

USDJPY Medium-term Trend: Bullish

On the medium-term chart, the pair has begun to drop above the supply level and could drop more. The price movement of USDJPY is currently seen above the EMA-50, suggesting a bullish trend.

The sustained bullish pressure at the $143.59 high mark in the last session has moved the pair up above the supply level in its recent low.

The price action drops significantly to the $142.66 low level above the EMA-50 as the 4-hourly chart opens today, indicating a bullish trend and a gradual return of the sell traders to the market.

However, the Yen price could drop more if the bears increase their selling actions. Hence, the $139.57 previous support might be reached soon.

The sellers’ activities further drop the market price of USDJPY down to the $142.47 support level as the journey down to the south commences.

Notably, the daily stochastic suggests the USDJPY price could drop more as it points down. In light of this, the pair may continue its slide to the $138.00 lower support level in the upcoming days as it drops more in its medium-term outlook.

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