USDJPY pair now drops below the supply levels with a bearish reversal pattern.
The currency pair is very likely to continue dropping to the downside.
USDJPY Weekly Price Analysis – November 24
The USDJPY pair reaches bullish exhaustion and drops below the $149.15 support level with a bullish reversal pattern. If the bears could add more strength to their selling forces in the market and break down from the immediate support of $149.03 level, additional confirmation for bearish recovery will be registered, which could expose the Yen price to a $132.00 lower support value. Hence, a great opportunity and a clear sell signal for the short traders.
USDJPY Market
Key Levels:
Resistance levels: $145.00, $146.00, $147.00
Support levels: $140.00, $139.00, $138.00
USDJPY Long-term Trend: Bearish
USDJPY price is bearish as it reaches bullish exhaustion and drops below the supply levels in its higher time frame. The market now trades below the moving averages; this affirms its bearish race.
The bears’ drop to the $148.10 low level, in the past few days has made the currency pair remain in a downtrend zone in its recent low. Meanwhile, the bears are now involved in the order flow to drop the pair further down, as the pair reaches bullish exhaustion.
Hence, after completing the upticks at $149.74 during yesterday’s trading session, the USDJPY sellers’ in-road briefly dropped down the Yen price to a $149.03 low level slightly below the EMA-50 as the daily chart resumes today. This suggests the return of the bears to the market to slide down the price of the Yen lower.
Therefore should the bears increase their swagger in the market, the price of USDJPY could drop down to retest the previous low at $133.01 value which would further invalidate any bullish thesis.
Additionally, the price of USDJPY has reached bullish exhaustion as indicated by the daily signal pointing downwards in the overbought region. In light of this, the price might possibly continue dropping and this may get to the $132.00 lower support level soon in its higher time frame.
USDJPY Medium-term Trend: Bearish
The USDJPY pair has also reached bullish exhaustion by displaying a bearish posture in its medium-term outlook. This is due to the high inflow from the short traders. 
The increase in the momentum by the short traders at a $149.16 low value during the previous session has enabled the USDJPY price to remain below the resistance lines in recent times.
The market price of USDJPY has just broken down the EMA-50 at the $149.03 supply level as the 4-hour chart opens today; this affirms the presence of more sellers in the market at the moment and also gives the currency pair a high tendency to drop further.
Notably, the USDJPY price is pointing down at the overbought region of the daily stochastic; it means that the pair has reached bullish exhaustion and the selling pressure may continue. As a result of that, the bearish race might possibly hit the $132.00 lower support level and beyond soon in the coming days in its medium-term outlook.
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.
Leave a Reply