The currency pair is slightly in a bullish market zone.
Buyers may have temporal control at the moment.
USDJPY Weekly Price Analysis – April 21
At the moment the USDJPY faces the positive side, there is likely to be a trend reversal as the market value of the Currency pair is overbought already. If all the current supply holds and sellers put more strength in their actions, the price might possibly drop down to the $126.553 lower support value and beyond, resulting in more gains for the sell traders.
USDJPY Market
Key Levels:
Resistance levels: $145.000, $146.000, $147.000
Support levels: $130.000, $129.000, $128.000
USDJPY Long-term Trend: Bullish
Analyzing the chart above, we can clearly see that USDJPY is in a bullish market zone. The price currently trades above the two EMAs. This means that the pair is in an uptrend.
Meanwhile, it seems that the bears are about to take over and drop the price down as the market is overbought already at the present.
The sustained bullish pressure to the $134.571 high value on the 18th of April pushed the Yen price above the supply trend value and sustained it. This really made it possible for the currency pair to stay up.
The bullish pressure moves the USDJPY price up to the $134.922 resistance level above the two EMAs as the daily chart opens today. This suggests that buyers are still dominant in the market at the moment. Should the sell investors add more aggression to their swagger in the market the Yen price will drop to the downside.
Further, the market value of USDJPY is pointing up around level 96% of the daily stochastic, this means that the Yen is overbought and the buying pressure will soon be exhausted. This will compel the sell traders to cluster around the market soon and drop the price further downward. The price may likely drop to a $126.553 lower level soon in the higher time frame as we watch sellers take over soon.
USDJPY Medium-term Trend: Bullish
The USDJPY pair is in a bullish market trend in its medium-term outlook. The price action of the pair at a $134.886 low level at the moment is currently seen slightly above the moving averages. This means that sellers are gradually coming in to change the race to a bearish run.
Hence, the USDJPY market value might drop further to a psychological level below the supply trend levels if the bears could add more strength to their selling motives.
The price indicator which is also pointing downwards in the overbought region indicates that the buying pressure has ended. Therefore we expect the short traders to continue the trend downwards and the $126.553 lower support level might be reached in the coming days in its medium-term view.
Note: Forexschoolonline.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.
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