USDJPY: Price Could Move Higher

Staying above EMA-50 can lead to strong growth for USDJPY.

Overall market sentiment regarding the currency pair remains bullish.

USDJPY Weekly Price Analysis – October 22
The bullish trend may continue provided the $113.651 level holds.

USDJPY Market
Key Levels:

Resistance levels:   $114.400, $114.450, $114.500
Support levels:       $109.100, $109.050, $109.000.

USDJPY Long-term Trend: BullishUSDJPY is trading in is an uptrend market zone in its long-term perspective as we can see from the daily chart. The bears managed to drop the price down at $113.651 in the support area as low of the day during yesterday’s session as the Yen remains in an upward trend.

The bears’ increased momentum lost as the bulls’ take over and opens today’s daily chart with a bullish doji candle at $113.967 in the resistance area. An indication of a trend reversal.

The reaction from the bulls pushes the price of USDJPY further up to $114.207 in the resistance area at the time of writing this article.

A divergence is noticed as the signal of the stochastic oscillator points down at around level 81% in the overbought region and the price stays above the two EMAs. It suggests that the overall outlook shows an upward momentum while a temporary drawdown may occur within the range in the days ahead in the long term.

USDJPY Medium-term Trend: BullishThe currency pair looks bullish in its medium-term outlook. The formation of an inverted bearish candle at $114.107 in the support area opens today’s 4-hourly chart.

The bear drops the price of USDJPY down to $114.001 in the support area. The journey down south continues as the initial price of the Yen moves down to $113.909 in the support area.

The price of USDJPY which is below the EMA-9 indicates that sellers are gaining momentum in the market at the present and the bulls are going on hibernation.

The stochastic oscillator signal is pointing downwards at around level 30% in the oversold region suggests the momentum in price is in a downtrend and sellers may remain in dominant of the market in the days ahead in the medium-term.

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