The currency pair is facing an increase in selling pressure.
The price of USDJPY might reach the $125.000 lower support value soon.
USDJPY Weekly Price Analysis – August 25
The USDJPY pair is facing the lower support trend levels at the moment; a further increase in the selling pressure may break down the $129.638 low value. Should the sell traders add more efforts to their selling activities, the price drop might reach the $125.000 lower support value and beyond.
AUDJPY Market
Key Levels:
Resistance levels: $140.000, $142.000, $144.000
Support levels: $128.000, $127.000, $126.000
USDJPY Long-term Trend: Bullish (Daily Chart)
The currency pair trades in a bullish flow in its long-term view. Despite the interference from the short traders, the USDJPY market still maintains a bullish trend in its long-term outlook.
The bulls’ pressure to a $146.401 resistance value on the 21st of August has made the Yen price stay above the supply levels in recent times.
The price drop to a $145.258 low value above the two EMAs as the daily chart resumes today suggests the brief return of the sell traders to stage a play. This indicates that the sell traders are dealing in the currency pair.
However, if sellers could add mere efforts to the selling motives, the price of USDJPY might drop further down to retest the previous low of $127.454 value which will stop any further bullish events.
The longer the price stays below the mentioned supply level, the more pressure builds up to reach a key significant level at the downside.
Notably, the USDJPY price is also pointing downwards at around 77%, this suggests that the price may likely continue with the low-dips, in light of this, the price drop might reach the $125.000 lower support value in the days ahead in its higher time frame.
USDJPY Medium-term Trend: Bullish (4H Chart)
The USDJPY pair is also in a bullish trend in its medium-term outlook. The bulls are trying not to fall this time around, but it seems that the sell traders are set to drop the price down further as they stand around the market at the moment.
The short traders in the road shortly after the commencement of the 4-hour chart dropped the USDJPY price down to a $145.279 low value slightly above the EMA-9.
Such lower price rejection indicates that sellers are defending this level and attempting to drop the price lower. Hence, a strong push below the $137.640 support level will offer strong support to the Yen price.
In addition, more downsides are still coming as shown by the stochastic oscillator pointing downwards to indicate a downtrend. With the look of things, the bearish rally may therefore drop the price of USDJPY to reach the $125.000 lower support value in no long time on the medium-term time frame.
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