The overall outlook of the currency market is bearish in trend.
The bears remain dominant in the market.
USDJPY Weekly Price Analysis – February 3
The USDJPY pair is on a downward movement and getting close to the lower support area. If the pressure from the bears increases, the current price at the $128.173 value may further drop to the $126.551 support level.
Resistance levels: $142.000, $143.000, $145.000
Support levels: $128.000, $127.000, $126.000
USDJPY Long-term trend: Bearish
The USDJPY pair is in a bearish trend in its long-term perspective. The bears’ increased momentum dropped the price of the currency pair down to the $128.533 support level below the two EMAs during yesterday’s session and sustained it.
The momentum from sellers continues and dropped Yen’s price down to the $128.425 support value below the resistance trend lines as the daily chart opens today.
The impulse move by the sell traders further dropped the price of USDJPY down to a $128.173 low level below the supply trend lines as at the time of writing this article. This is an indication of a downtrend in the context of the strength of the market. If the bears should add more effort to their selling pressure, the price may likely drop further to retest the previous low at the $127.454 support level.
Meanwhile, the price of USDJPY is pointing downwards approaching the oversold region of the daily stochastic. This indicates that the currency pair is in a bearish momentum and might possibly remain in the same direction to reach the $126.551 lower support value in the days ahead in its long-term perspective.
Hence a sell signal.
USDJPY Medium-term trend: Bearish
On the 4-hourly chart, the pair is in a downtrend. The price bar can be seen below the supply trend levels. The selling pressure on the USDJPY market during the previous action has sustained the pair below the supply trend levels in its recent low.
However, the currency pair is now finding its way up as the bulls gradually stage a return to the market.
The formation of a bullish candle at the $128.602 resistance level which further rises to the $128.788 high value below the two EMAs as the 4-hourly opens today indicates a downward momentum and the bears still remain dominant at the present.
Meanwhile, there is a possibility for an upward trend to resume soon as the USDJPY market is oversold already as indicated by the stochastic oscillator. Thus, the momentum in the price of the currency pair is likely going to encounter a change in trend as buyers are expected to emerge and push the pair up, as a result of this the price might turn upside to reach a significant level in the supply area in the days ahead in the medium term.
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