The USDJPY pair is in a bearish market in both outlooks
Sellers may have a temporal dominance in the market as the selling pressure is exhausted.
USDJPY Weekly Price Analysis – January 20
The USDJPY price is actually on its way to the critical supply level. The bullish momentum may likely continue provided the buy investors add more strength to their actions and push the Yen upward. The currency pair might turn upsides further to a $150.286 high level and beyond.
USDJPY Market
Key Levels:
Resistance levels: $140.000, $141.000 $142.000
Support levels: $128.000, $127.000, $126.000
USDJPY Long-term trend: Bearish
The USDJPY pair is in a downward move in its long-term perspective as can be seen undeniably from the daily chart. The sustained bearish pressure at the $127.454 low value during the previous session had made it capable for the price to remain in a downward trend.
The momentum however changes as the daily chart opens today with a bullish candle at a $128.819 supply level below the moving averages; this thus implies that sellers are losing their strength and getting weaker while the long traders are coming in a grand style to dominate the market.
The impulse move from the bulls further pushed the price of the Yen up to the $131.574 resistance level at the time of writing this article. Should the bulls change their orientation and increase their buying pressure, the pair may likely rise above its previous high of $149.710 value.
Hence, with the price pointing upwards in the oversold region of the daily stochastic, this means that further upside is certain. It is therefore expected that the buy investors will move the price of USDJPY up and may likely hit the $150.000 supply level in the days ahead in its higher time frame.
USDJPY Medium-term trend: Bearish
The momentum on the medium-term time frame is also distinctly bearish. Nevertheless, it seems the bulls will take over the price of USDJPY soon and push us higher as the market now trades at the oversold region. The bearish pressure at the $128.050 support value during yesterday’s session has contributed to its downward trend.
Today’s 4-hourly chart opens with a bullish candle at the $128.560 supply value, this was overridden by the bears to a low at $128.003 level below the two EMAs.
The bulls’ correction move to the $128.842 supply value at the moment suggests that the market is gradually returning to the bullish market.
An increase in buying pressure further increased the price of USDJPY UP to the $128.892 high mark as a pullback to resume the uptrend.
Hence, we have a bullish bias that the USDJPY price will continue the bullish trend as the market is pointing up in the oversold region. If the buying pressure should increase there may be a potential rise in the price of the Yen and this might possibly reach the $150.000 supply level in the coming days in its medium-term outlook.
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