The USDJPY pair still trades in a bullish market zone but may slide below the $140.79 support level soon.
Sellers may likely resume dominating the USDJPY market soon.
USDJPY Weekly Price Analysis – May 31
At the moment the USDJPY remains on the positive side. The price may collapse and slide below the $140.79 support value if the bears could add more aggression to their selling actions in the market. The target might be the $138.00 lower support value in the days ahead, leading to a sell opportunity for the sell traders.
USDJPY Market
Key Levels:
Resistance levels: $155.00, $156.00, $157.00
Support levels: $149.00, $148.00, $147.00
USDJPY Long-term Trend: Bullish (Daily Chart)
The USDJPY pair may likely slide below the $140.97 support level as it is already overbought in its long-term view. The pair portrays a bullish sentiment as the prices are traded above the EMA-50 at the moment.
The sustained bullish pressure on the currency pair in the past few days has sustained the Yen price above the supply trend levels in its recent high.
The USDJPY price on the daily chart today is currently trading at the $157.40 supply level above the moving average. This is an indication of an uptrend. However, the price may slide below the $140.79 support value soon as the chart suggests that the bears are warming up to take over the trend which is already overbought.
Hence, a strong breakdown below the $140.79 support point would intensify and strengthen the bearish pressure on the currency pair.
In addition, the daily stochastic indicates a downtrend at the 99% range in the overbought region, this indicates that the sell investors may likely resume the bearish trend soon and this may slide below the previous support value at $140.79 which might further extend the USDJPY price to reach the $138.00 lower support mark in the days ahead in its long-term outlook.
USDJPY Medium-term Trend: Bullish (4H Chart)
USDJPY is in a bullish market zone in its medium-term perspective. However, the price may slide below the supply levels soon as the market is already overbought.
The intervention from the bulls at the $157.19 supply value in the previous action has made the price of USDJPY stay above the supply trend line in recent times.
Shortly after the opening of the 4-hourly chart, the bulls pulled back to a $157.36 high level above the EMA-50, indicating an uptrend. Meanwhile, the price of the Yen may slide below the resistance level if the selling pressure receives an aggressive push and further buying forces are withheld.
In addition to that, the USDJPY market is pointing up at around level 92%, which means that the market is overbought. This will quicken the emergence of the bears soon if this is achieved, the Yen price may slide below the $140.79 support level which decline further to the $138.00 lower support level in the days ahead in its medium-term time frame.
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