USDJPY price may possibly resume a bearish momentum to break down the $127.454 support value soon.
The bulls may have temporal control.
USDJPY Weekly Price Analysis – May 26
The USDJPY pair has the potential for a downward rally as the market price is overbought already. The Yen is in an uptrend; conversely, if the bears could push harder and the market prices sustain below the level of $127.454, the bear’s trend would continue downward and possibly hit the the$125.000 lower support level. Thus, a clear sell signal for the coin investors.
Resistance levels: $130.00, $140.00, $150.00
Support levels: $125.00, $123.00, $121.00
USDJPY Long-term Trend: Bullish (Daily Chart)
On the daily chart, the USDJPY pair is trading above the moving averages, meaning it’s in a bullish trend zone. The sustained bullish pressure at the $138.687 level in the past few days actually made it capable for the buy investors to retain the upward strength in its recent high.
The currency pair on the daily chart today is currently above the resistance trend lines and trading at the $138.732 correction level above the moving averages. This suggests an uptrend in the context of the strength of the market.
With the bullish doji candle at the current supply level, it means that the price of USDJPY may likely encounter a trend reversal. Should sellers exchange hands with the bulls at the $138.732 supply value and dump the Yen price below the previous low at the $127.454 trend line, further buying pressure will be invalidated.
In addition to that, the market price of USDJPY is now trading at a level of 96% of the daily stochastic in the overbought region. This means that further upside may be unlikely as the pair is overbought. This might possibly expose the USDJPY price to the $125.000 lower support levels and beyond in the coming days in its long-term outlook.
USDJPY Medium-term Trend: Bullish (4H Chart)
On the medium chart, USDJPY prices are above the moving averages, confirming a bullish momentum breaking the previous high. The pair is in a smooth uptrend as can be seen from the chart below.
Pressure from the bulls at the $138.910 high value in the previous action has sustained its upward stability in its recent high.
Today’s 4-hourly bullish doji candle at $138.549 which further rises to a $138.731 supply mark above the moving averages confirms the bulls' dominance in the market.
Hence, there is likely going to be a trend reversal as the market price of USDJPY now approaches the overbought region of the daily stochastic. This means that the sell traders might possibly take over soon. If this is attained, the bearish trend may likely extend the price of USDJPY to the $125.000 lower support level, resulting in a sell signal for the sell traders in the coming days in its medium-term perspective.
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