USDJPY still trades in a downtrend.
Bears are gaining momentum gradually, might be time to sell USDJPY soon.
USDJPY Weekly Price Analysis – August 20
Should the sellers increase their momentum, the support level of $107.424 may be retest.
Resistance levels: $111.000, $111.005, $111.010
Support levels: $109.000, $108.000, $107.000
USDJPY Long-term Trend: BearishThe currency pair is in a downward momentum in its long-term perspective. The bears increased momentum dropped the price down to $109.765 in the support area, during yesterday’s session. Price at $109.483 in the support area remains the close of the day.
A bearish doji candle at $109.724 opens today’s chart in the support area within the range, an indication of a trend reversal.
USDJPY further drops down to $109.570 in the support area below the two EMAs which are glued together, an indication of downward momentum in the price of the Yen.
Thus, stochastic oscillator signal pointing upwards at around level 43% indicates the momentum in the price of USDJPY may likely encounter a trend reversal in the nearby days and in this case an uptrend in the long-term.
USDJPY Medium-term Trend: Bearish The pair is in a bearish market zone in its medium-term outlook. The sustained bullish pressure pushed the currency pair further up at $109.885 in the resistance area during yesterday’s session.
The bears return gradually with an initial drop to $109.843 in the support area as the 4-hourly chart opens today.
Pressure from the sellers drops the price of USDJPY down to $109.748 in the support area as the journey down south continues.
USDJPY is initially down at $109.623 in the support area below the two EMAs which are joined together. This implies that bears are in control of the market at the moment.
The stochastic oscillator signal pointing downwards at around level 26% in the oversold region is an indication of downward momentum in the price of USDJPY.
This implies the bears may continue to dictate the market direction in the days ahead in the medium-term. Hence, sellers may take a position as desired.
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.