USDJPY: Price Will Reverse Soon

USDJPY is facing more pressure from the bulls.
The currency pair is in a strong bullish trend both in the long-term and medium-term outlooks.

USDJPY Weekly Price Analysis – June 3
In case the bears increase their price action in the market; the support level of $126.551 may be tested, and the price may decrease to the $121.278 support level.

Key Levels:
Resistance levels: $129.800, $129.850, $129.900
Support levels:      $126.500, $126.350, $126.250

USDJPY Long-term Trend: BullishThe currency pair is bullish on the daily (1D) chart. The bears caused a drop in the market value of the Yen to $129.512 as the low of the day in the support area during yesterday’s session.

The market value of USDJPY rises to the $129.832 resistance level as the bulls resume briefly to the market as the daily session opens today.

Actions from the bulls further move the market price of the USDJPY up to the $129.846 resistance level.

The market action of USDJPY is up at the $130.040 resistance level which is above the moving averages at the time of writing this article. This suggests that the bulls are the dominant of the market at the moment.

However, the momentum indicator pointing down at around level 90% in the overbought region suggests there may likely be a reversal in the trend in the days ahead and in this case a downtrend in the long-term.

Sellers may wait for this action to begin before taking their desired position.

USDJPY Medium-term Trend: BullishOn the 4-hourly chart, the market is in an upward move. The formation of a bullish candle at the $129.755 resistance level opens today’s 4-hourly chart.

The impulse move by the buyers further moves the market price of USDJPY up to the $129.856 resistance level.

Continuation to the north is confirmed by the bullish candle at the $129.866 resistance level above the moving averages as the high of the day at the time of writing this article.

Meanwhile, the momentum indicator shows the price signal of USDJPY is pointing downwards in the overbought region of the daily stochastic around level 95%. This indicates that the price of the Yen is likely to encounter a trend reversal in the days ahead in the medium-term view and in this case a downward trend.
Hence, the buyer’s relief.

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