Bears are gathering momentum to dominate the market.
Sellers need to wait for this to happen before placing an order.
USDJPY Weekly Price Analysis – April 22
USDJPY may continue its bearish movement if the daily candle closes below the $124.760, the support levels of $121.309 and $121.278 may be the target.
Resistance levels: $128.650, $128.750, $128.850
Support levels: $121.278, $121.178, $121.078
USDJPY Long-term Trend: BullishThe USDJPY pair still trades in an uptrend in its long-term perspective. The bulls' pressure on the currency pair at the $128.707 resistance level further led to an increase in the market price of the Yen during yesterday’s session, so best to position ourselves accordingly and see how far this can go.
The bulls lost the momentum, as the daily chart opens today with the formation of a bearish candle at the $128.319 support level as the sellers decide to take over the market at the moment.
Activities from the bears further dropped the price of the USDJPY down to the $127.988 support level as the journey down south continues.
The market price of USDJPY is initially down at the $127.931 support level above the two EMAs, this indicates an upward trend in the context of the market strength.
A further downward is likely as the momentum indicator shows the price signal is also moving downward at around level 82% in the overbought region this gives room for a more bearish impact on the market. Sellers are disposed to continue their downtrend orientation as the price has reached the overbought region in the days ahead in its long-term perspective.
USDJPY Medium-term Trend: BullishThe currency pair is in a bullish trend zone in its medium-term outlook. The bulls’ increased momentum moved the price up to the $128.661 resistance level during yesterday’s session. The momentum was lost as the bears took over thereafter.
The formation of a bearish candle at the $128.622 support level as the 4-hourly chart opens today affirms the bearish presence in the market.
The impulse move by the sellers further drops the market price of USDJPY down to the $127.947 support level.
Continuation to the south is confirmed by the bearish candle at the $127.737 support level as the low of the day at the time of writing this article.
The market value of the Yen is below the EMA-9 and above the EMA-50, this implies that the bulls are getting weaker gradually and sellers are ready to dominate the market soon.
Meanwhile, the market price of USDJPY is pointing down at around level 25% in the oversold region of the daily stochastic. This indicates that momentum in the price of USDJPY is in a bearish momentum and may continue in the same direction in the nearby days in the medium-term.
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