The currency pair still trades in a bullish market zone.
Sellers may likely resume dominating the USDJPY market soon.
USDJPY Weekly Price Analysis – October 20
At the moment the USDJPY remains on the positive side. The price may likely collapse and slide to the $132.50 support value if the bears could add more aggression to their selling actions in the market. The target might be the $100.00 lower support value.
Resistance levels: $144.00, $145.00, $146.00
Support levels: $140.00, $139.00, $138.00
USDJPY Long-term Trend: Bullish (Daily Chart)
The USDJPY pair trades in a bullish trend zone in its long-term view. This is due to the high impact from buyers. The prices are traded above the moving average which has confirmed is bullish trend. However, sellers may take over soon and slide the Yen price below the supply level as the market is overbought already.
The sustained bullish pressure on the currency pair in the past few days has sustained the Yen price above the supply trend levels in its recent high.
The USDJPY sellers road–in briefly and dropped the Yen price to a $149.48 low value above the EMA-50 as the daily chart opens today.
This is an indication of an uptrend. It also suggests that the bears are warming up to slide and take over the trend as the trading session continues. Hence, a strong breakdown below the $137.32 support point would strengthen the bearish pressure.
In addition to this, the daily stochastic indicates a downward trend, this means that the short traders may likely continue with the bearish correction pattern to further slide the current support value which might extend the USDJPY price to reach the $100.00 lower support mark in the days ahead in its long-term outlook. Hence, buyers’ relief.
USDJPY Medium-term Trend: Bullish (4H Chart)
According to the chart below, the medium-term outlook for the USDJPY market is in a bullish trend zone. The bulls have benefited from the recent market structure.
Meanwhile, the Yen price may likely slide downsides soon as the market buying pressure seems to be overbought at the moment.
The intervention from the bulls at the $149.71 supply value in the previous action has made the price of USDJPY stay above the supply trend line in its recent times.
The market value of USDJPY at the $149.78 resistance value above the EMA-50 suggests an uptrend in the context of the strength of the market.
Furthermore, the daily signal suggests that the buying pressure may soon be exhausted as indicated by the daily signal pointing up around 92% in the overbought region. This means that negative sentiment is returning to the market soon.
This will bring the emergence of sell traders to cluster around the market and drop the price further. The price of USDJPY may likely slide to a $100.00 lower support value in the coming days in its medium-term outlook as we watch sellers taking over soon.
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