USDJPY is likely to reverse at the $140.70 support level.
The bullish momentum might resume soon.
USDJPY Weekly Price Analysis – December 29
The market price of USDJPY may reverse at the $140.70 support level to resume its upside moves soon. Based on the outlook, should the bulls push higher and the Yen price close above the $151.90 previous high mark, a bullish breakout confirmation will reflect the improved market sentiment. Doing so will offer a higher footing for buyers to prolong this recovery. Thus, a post-retest rally may drive the prices high to hit the $152.00 resistance.
Resistance levels: $142.00, $143.00, $144.00
Support levels: $138.00, $137.00, $136.00
USDJPY Long-term Trend: Bearish
Analyzing the daily chart above, we can see that the USDJPY price is trading below the moving average lines. Meanwhile, the Yen price may reverse soon as the selling pressure seems to have been exhausted.
The currency pair price has been below the supply trend levels since its most recent low due to the persistent bearish pressure over the last few days.
Today, the aggressive move by the bears further drops the market price of USDJPY down to a $140.70 low level below the EMA-50 as the journey down south continues.
If the bulls should increase their price action, the price of USDJPY may likely reverse at the $140.70 support level to retest the previous supply level at $151.90 putting further bearish sentiment into hibernation.
In addition, the price of USDJPY pointing upwards at the oversold region on the daily stochastic means that further downside is uncertain. So, there is a possibility that the Yen price will reverse and move the price action up and in this case, the pair may likely hit the $152.00 upper resistance level soon in the days ahead its higher time frame.
USDJPY Medium-term Trend: Bearish (4H Chart)
The USDJPY pair is showing a bearish display in its medium-term perspective. The price bars can be seen below the moving averages. However, the price may likely reverse at the current support of $140.70 level as the market is already oversold.
The sustained bearish pressure at the $141.168 low value during yesterday’s session has made the pair remain in a bearish market in its recent low.
Activities from the bears further dropped the price of USDJPY down to a $140.70 support level below the EMA-50 as the 4-hour chart resumes today. This is an indication of a bearish trend.
Thus, if the bulls can put extra effort into the price action, the currency pair may reverse and break above the $149.74 supply mark, which will put further selling pressure into hibernation.
Notably, the USDJPY may likely reverse at the mentioned support as the market price now trades at the oversold region. As a result, the pair could reverse to the upside and hit the $152.00 upper resistance value in the coming days in its medium-term outlook.
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