The overall outlook of the currency pair market is bullish in trend.
The bears have temporal control in the market.
USDJPY Weekly Price Analysis – October 1
USDJPY price now trades at the top part of the rising channel close to the upper resistance area.
Resistance levels: $111.950, $112.000, $112.050
Support levels: $108.400, $108.300, $108.200
USDJPY Long-term Trend: BullishUSDJPY price may head towards $112.049 as currency pair’s traders turn bullish. After few days of increased actions by the bulls, the momentum lost, and bears returns to take over. $111.942 bearish candle opened yesterday’s session in the support area with $112.078 high and low at $111.239 returned the Yen within the range.
Today’s daily chart at $111.254 opens with the formation of a pin bar hammer in the support area.
The price of USDJPY is initially down at $111.115 in the support area above the two EMAs which are fanned apart, an indication of upward momentum in the price of the Yen.
Meanwhile, the price of USDJPY is in the overbought region of the daily stochastic pointing downwards at around level 86%. This indicates that the price might remain in a bearish momentum and a sell signal in the nearby days in the long term.
USDJPY Medium-term Trend: BullishThe currency pair is in a bullish trend in its medium-term outlook. The bulls’ increase momentum moves the price up at $116.061 in the resistance area with its wick touching the resistance area line during yesterday’s session.
Today’s 4-hourly opening candle at $111.397 in the support area is bearish as the bear’s in-road to the market in a grand style.
USDJPY drops further down to $111.116 in the support area. Bull’s brief return moves the price up at $111.191 in the resistance area as the session continues.
Reactions from the bulls now move the price up at $111.119 above the EMA-50, which indicates that the bulls are in control of the market at the present.
The signal of the stochastic oscillator pointing up at around level 15% in the oversold region implies upward momentum in the price of USDJPY within the range in the medium-term.
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