The USDJPY pair is poised for a potential drop.
The bears may dominate the Yen market soon.
USDJPY Weekly Price Analysis – January 3
The USDJPY pair is poised for a potential drop as it begins the down south movement. Meanwhile, the pair might continue the bearish move if the bears can increase their actions on the currency pair. The momentum in the Yen price could slide to hit the $139.57 support value and drop further to reach a $137.69 lower support level, suggesting a sell signal.
USDJPY Market
Key Levels:
Resistance levels: $156.00, $157.00, $158.00
Support levels: $142.00, $141.00, $140.00
USDJPY Long-term Trend: Bullish (Daily Chart)
The USDJPY price is poised for a potential drop as sellers move in gradually to pull the Yen down in its long-term view. The momentum on the higher timeframes (1D) is bullish as prices are above the supply level.
Meanwhile, the USDJPY price is about to reach the support level as sellers are back in the market to take over again, so it seems likely that the bears are about to take over and drop the pair lower.
The sustained bullish pressure on the currency pair at the $157.54 supply level in the previous session has moved it above the crucial level in its recent high.
Today, the USDJPY price is poised for a potential drop as bears dropped the Yen price to a low at $157.10 value above the EMA-50 as the daily chart opens, as sellers resume the journey to the south.
An increase in selling pressure might lead the Yen price to retest the previous low of $139.57, obtaining a higher footing to drop lower.
A further downward is likely as the momentum indicator shows the price signal is also moving downward, suggesting the USDJPY price is poised for a potential drop and might hit the $137.69 lower support level in the days ahead in its long-term perspective.
USDJPY Medium-term Trend: Bullish (4H Chart)
The momentum on the medium-term time frame is also distinctly bullish. Nevertheless, the USDJPY pair is poised for a potential drop as sellers begin the downward trend. 
The bullish pressure at the $157.54 high point in the last few hours has sustained the price above the resistance level in its recent high.
The USDJPY price is poised for a potential drop to the south by the bearish candle at a $156.70 low value above the EMA-50 as the 4-hourly chart commences today.
Thus, a breakdown below the $148.79 low would enable sellers to regain control and potentially drop the USDJPY price toward the lower support area.
Meanwhile, the price of USDJPY is pointing down on the daily stochastic, suggesting the pair for a potential drop. In light of this, the Yen price may drop to as low as the $138.00 support level in the days ahead, resulting in a sell signal in the medium term.
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