The currency pair is bearish but could see another bullish rally soon.
For the time being, sellers remain dominant in the market.
USDJPY Weekly Price Analysis – July 26
At the moment, the USDJPY remains bearish. The pair could see another bullish rally soon if the bulls should push harder and trade hands with the bears at the $152.22 current support. The price may likely turn around in a bullish manner to retest the prior high of $161.93, which would expose the Yen price to the $170.00 upper high level and beyond, offering a good entry point for the long traders.
USDJPY Market
Key Levels:
Resistance levels: $140.00, $150.00, $160.00
Support levels: $129.00, $128.00, $127.00
USDJPY Long-term Trend: Bearish (Daily Chart)
The USDJPY market is having a bearish posture and could see another bullish rally soon in its long-term outlook. The sustained pressure from the bears at the $153.10 support level during yesterday’s session has contributed to its bearishness in its recent low.
Today, the bears continue the down south journey and dropped the USDJPY price to a $152.22 low level below the moving averages; this is an indication of bearish momentum in the context of the strength of the Yen. The bears are dictating the market conditions at present.
Hence, should the bulls put additional efforts into their buying motives; the price of USDJPY could turn to see another bullish rally and turn positive to retest the previous high of $161.93 value, thereby attracting more buyers.
Further, USDJPY is likely going to reverse and the Yen could see another bullish rally soon as the market is now trading in the oversold region around the level 5% range of the daily stochastic; it means that the selling pressure will end soon.
This will compel the buy traders to resume an uptrend and may likely break up the $161.93 supply level to hit the $170.00 upper resistance in the days ahead in its higher time frame. Thus, buyers need to wait for this to take place before placing an order.
USDJPY Medium-term Trend: Bearish (4H Chart)
According to the chart below, the medium-term outlook for the USDJPY market is in a bearish trend zone. The bears have benefited from the recent market structure. Meanwhile, the Yen price could see another bullish rally soon as it began its rising pattern below the supply levels.
The bearish candle at the $152.82 low value during the previous action has made the Yen price to trade below the supply levels in recent times.
Today, the bulls made a pullback to the $152.97 high level below the moving average as the 4-hourly chart opens today. This is an indication that the Yen price could see another bullish rally soon.
Meanwhile, the USDJPY has finished the downward correction and started reversing as shown by the daily signal pointing upwards to indicate the continuation of another bullish rally. In light of this, the upcoming bullish rally may reach the $170.00 upper high value in the coming days in its medium-term perspective.
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