USDJPY – Remains At The Risk Of More Downsides

USDJPY is facing more pressure from the bears.
The currency pair has a limited upside both in the long-term and medium-term outlooks.

USDJPY Weekly Price Analysis – May 21
The pair is really trying hard not to fall below the trend line at level $108.342

USDJPY Market
Key Levels:

Resistance levels: $110.950, $110.960, $110.970
Support levels: $102.512, $102.500, $102.488

USDJPY Long-term Trend: BullishThe momentum on the long-term outlook looks bullish as can be seen from the daily chart now.

The sustained bearish pressure pushed the currency pair down to $108.748 in the support area during yesterday’s session.

The bulls’ brief return pushes the price up at $108.763 in the resistance area as the daily chart opens today.

USDJPY Price which is up at $108.897 in the resistance area revolving around the two EMAs suggests the bulls are gradually returning to the market.

The stochastic signal pointing down at around level 41% in the oversold region indicates there may be a change in momentum in the price of USDJPY in the future in the long-term and in this case, a downward trend.

USDJPY Medium-term Trend: BearishThe pair looks bearish in its medium-term outlook. The bears made a progressive movement to the south at $108.875 in the support area with a touch at the two EMAs during yesterday’s session. The impulse move by the bears later dropped   USDJPY to $108.751. However, buyers return briefly and move the price a bit up to $108.897 in the resistance area before the close of yesterday’s session.

Today’s 4-hourly chart opens with a bearish pin bar inverted candle at $108.830 in the support area. An indication of a trend reversal.

The bears’ gradual in road to the market drops the price of USDJPY down to $108.737 in the support area.

Price is initially down at $108.737 in the support area with the formation of a pin bar candle, an indication of a trend reversal. The currency pair now trades below the two EMAs, this implies the bears are already dictating the market.

However, the stochastic oscillator signal points up at level 27 % in the oversold region suggests the price of the USDJPY may likely change and in this case, an uptrend in the medium-term perspective.

Therefore, buyers may wait for this action to occur and take their position as desired.

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