USDJPY: Price May Decline to the $125.000 Lower Support Level

USDJPY is facing more pressure from the bears.
The pair looks bullish in the long-term outlook and in a bearish structure in the medium-term outlook.

USDJPY Weekly Price Analysis – July 28
USDJPY is facing an increase in selling pressure at the moment. USDJPY: price may decline to the $125.000 lower support level. In case the short traders increase their selling momentum and the bears’ pressure breaks down the previous support at $127.454 value, the price of the Yen may decline to the $125.000 lower support level in the days ahead leading to a sell opportunity for the sell traders.

USDJPY Market
Key Levels:
Resistance levels: $145.000, $146.000, $147.000
Support levels: $129.000, $128.000, $127.000

USDJPY Long-term Trend: Bullish (Daily Chart)
The USDJPY pair is in a bullish trend zone in its long-term outlook. The price bar can be seen above the EMA-50, indicating an uptrend zone.

The sell traders made a downward move to the $140.852 support level before the end of yesterday’s session. This gave sellers more strength to continue with the trend in its recent low.

The bears caused a drop in the market value of USDJPY to the $140.347 support value below the EMA-9 but slightly above the EMA-50 as the daily chart opens today. This suggests that the bulls are getting weaker while the bears are returning to the market in a grand style.

Reaction from sellers further dropped the price action of USDJPY down to the $139.921 support level as the journey down south continued.

A breakdown below the support trend line will invalidate the bullish thesis and can plunge prices back to retest the $127.454 lower mark.

In addition, the daily stochastic indicates a downtrend, this means that the sell investors may likely continue with the bearish correction pattern to break down the current support value which might further extend the USDJPY price to reach the $125.000 lower support value soon in its long-term outlook.

USDJPY Medium-term Trend: Bearish (4H Chart)
USDJPY is in a bearish market zone in its medium-term perspective. The price is now below the supply levels, indicating a bearish trend.

The bearish pressure at the $140.852 support level in the past few hours has made the Yen price stay below the supply trend levels in recent times.

Actions from the bears further dropped the coin price down to the $139.926 support level below the two EMAs as the 4-hourly chart resumes today, an indication of a downtrend in the context of the strength of the market.

With sustained selling, the price of USDJPY may retest the previous low at the $137.640 level and set the potential for further decline.

In addition, the USDJPY market is showing more downside possibilities as shown by the daily stochastic pointing downwards; we can certainly expect more dumps and decline from the Yen. The pair may likely decline further to the $125.000 lower support level in the days ahead in its medium-term time frame.

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