The currency pair could still decrease despite trading in the supply zone.
The bulls may have temporal control soon
USDJPY Weekly Price Analysis – March 10
The USDJPY market price is gradually losing bullish momentum. Should sellers aggressively increase their tension in the market and retain or hold the price below the $127.454 support level, the price action may extend to a $125.000 lower support level and beyond.
Resistance levels: $145.000, $146.000, $147.000
Support levels: $130.000, $129.000, $128.000
USDJPY Long-term Trend: Bullish
The USDJPY pair portrays a bullish market trend in its long-term outlook. The price responded to the shift in the market structure and is currently in red above the two EMAs.
The bulls have sustained the USDJPY market at the $137.195 supply value in the previous action, this has made it possible for the pair to stay above the trend line.
Today’s daily chart opens with a bearish candle at the $137.137 support value which is above the moving averages; an indication of an uptrend.
Action from the bears further dropped the Yen price down to the $136.704 low value above the two EMAs. This is an indication that the bears are coming into the market gradually to dominate the market conditions.
However, there is a possibility for the pair to decline further as indicated by the daily stochastic which is pointing downwards. This will compel the sell investors to dominate the market soon and with this new trend pattern, the price of USDJPY may likely drop to a $125.000 lower support level in the coming days in its higher time frame.
USDJPY Medium-term Trend: Bullish
The USDJPY pair is in a bullish trend in its medium-term outlook. The price bar can be seen above the moving averages. The sustained bullish pressure to the $136.260 high value in the previous section has made the Yen price stay above the moving averages in its recent time.
Today’s 4-hourly chart opens on a bullish note at the $137.911 supply level which later dropped to a $136.812 low level above the moving averages, this means that the short traders are coming in gradually to stage a play in the market while the long traders are getting weaker.
Additionally, more downsides are likely as the USDJPY pair is pointing down in the overbought region of the stochastic; this means that the buying pressure has ended, and we can now be looking at the returns of the bears to resume the downtrend, and in this case, the pair might reach a low at $125.000 level soon in its medium-term perspective.
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