Looks like the price will want to drop again.
USDJPY possibly making its way down after hitting the $132.405 support level.
USDJPY Weekly Price Analysis – January 6
At the moment the USDJPY faces the negative sides, should sellers put more aggression into their selling pressure, the pair may possibly drop further to reach the $130.599 support level as the bears aim to drag the market price to the lower support level and beyond.
Resistance levels: $146.000, $147.000, $148.000
Support levels: $132.000, $131.000, $130.000
USDJPY Long-term Trend: Bearish
On the daily chart, the USDJPY pair is trading below the moving averages, which means that it’s in a bearish trend zone. Meanwhile, the bulls’ pressure on the currency pair at the $132.714 resistance level further led to an increase in the price of the Yen during yesterday’s session, after which the momentum was lost.
The bulls lost momentum, as the daily chart opens today with the formation of a bearish pin bar candle at the $132.602 support level as sellers continue to dictate the market at the moment.
Increase momentum by the bears drops the market price of the Yen further down to the $132.405 support level as it journeys down south.
The market value of USDJPY is initially down at the $131.683 support level below the supply levels, an indication of a bearish trend and more sellers present to dominate the market.
Similarly, more downsides are likely as indicated by the daily stochastic which is pointing down at around level 37% in the oversold region. It indicates that the market may continue to fall to the downsides as a result the USDJPY pair might possibly hit the $130.599 low level in the days ahead in its long-term perspective.
Hence sellers should wait for this to happen before taking a position.
USDJPY Medium-term Trend: Bullish
On the 4-hourly chart, the pair is in a bullish market zone. The price movement of USDJPY is currently seen to be above the moving averages in the medium-term outlook.
Hence, the sustained bearish pressure moved the pair down to the $132.602 support level during yesterday’s session and sustained it.
The price action drops down significantly to the $132.481 low value as the 4-hourly chart opens today.
The journey down south continues as the bears dropped the initial price of USDJPY down to the $132.394 support level slightly above the two EMAs. This indicates a gradual return of the short traders while the bulls will soon get weaker. If the bears could push harder, the price of USDJPY might further turn downsides to the key significant levels at the lower support area.
In addition to that, the daily stochastic which is pointing down at around level 91% in the overbought region also indicates that further buying pressure is unlikely, therefore, the price of USDJPY may likely remain or continue in the same direction and in this case, a downtrend which may possibly hit the $130.599 support level in the nearby days in its medium-term outlook.
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