Looks like the price of USDJPY will want to bounce up soon.
The bears may have temporal control over the market any moment from now.
USDJPY Weekly Price Analysis – December 2
The USDJPY market is now in favor of the bears trading in a bearish zone. However, the price may likely reverse and face the positive side soon as the market is oversold. If the bulls could push higher and the current support value at a $135.032 low value holds, the correction phase may possibly rise to hit the $170.000 supply trend line.
Resistance levels: $150.286, $150.386, $150.486
Support levels: $135.200, $135.100, $135.000
USDJPY Long-term Trend: Bearish
On the daily chart, the USDJPY pair is trading below the moving average lines, which means that it’s in a bearish trend zone. The bears’ pressure on the currency pair at the $135.209 level further led to a dump in the price of the Yen during yesterday’s session and sustained it.
The bears’ pressure on the currency pair further dropped the price down to the $135.032 support mark as the daily chart opens today.
Increased momentum by the short traders drops the market price of the Yen down to a $135.033 low level below the moving averages as it journey down south. This implies that the sell traders are ruling in the market at the moment.
Meanwhile, the USDJPY price now trades below the 5% range in the oversold region of the daily stochastic. It indicates that the selling pressure will soon be exhausted, and because of that the pound is reversing and turning to the upside sooner. This upcoming bullish correction may likely reach the $170.000 high value in the days ahead in the long-term perspective. Hence buyers should wait for this to happen before taking a position.
USDJPY Medium-term Trend: BearishOn the 4-hourly chart, the pair is in a downward move. The price movement of USDJPY is currently seen to be in the bears’ direction.
The price action drops significantly down to the $135.123 support level as the 4-hourly chart opens today.
The sell trader’s activities further dropped the market price of USDJPY down to the $135.004 support level below the two EMAs; this is an indication of more buyers’ presence in the market.
However, the selling pressure is exhausted as indicated by the daily this will compel the bulls to commence the bullish trend soon and as a result, the Yen price might jump to the $170.000 supply mark in the days ahead 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.