USDJPY holds a recovery opportunity with a bullish reversal pattern.
The bulls are still dominating the market at the moment.
USDJPY Weekly Price Analysis – October 6
At the moment the USDJPY faces the positive side, and the recovery pattern may reach the above-mentioned supply level if the bulls could increase their efforts in the market and break out from the immediate resistance of the $149.87 level. The Yen price could be exposed to a $152.00 upper resistance level soon. Hence, a great opportunity and a clear buy signal for long-term investors.
Resistance levels: $145.00, $146.00, $147.00
Support levels: $137.00, $136.00, $135.00
USDJPY Long-term Trend: Bullish
The long-term market value of USDJPY is moving in a bullish direction. The pair is now strongly trading above the EMA and its recovery pattern may reach the upper resistance territory.
The sustained bullish pressure to a $149.38 high level in the past few days has made it possible for the pair to stay up at its recent high.
Today’s daily bullish candle at the $149.31 supply value above the supply trend level confirms the bulls’ dominance in the market. This breakup may possibly accelerate the bullish momentum and extend the ongoing correction to a higher level.
Therefore should buyers increase their swagger in the market, the price of USDJPY is poised to pump up above the key resistance levels around $149.87.
Similar to this, the momentum indicator which is pointing up indicates that the currency pair is in an uptrend and may possibly remain in that direction and the recovery pattern may reach the $152.00 supply level and beyond soon in the higher time frame.
USDJPY Medium-term Trend: Bearish
The USDJPY pair is trading in the bearish trend market in its long-term outlook. The price bar can be seen below the moving average lines and has confirmed its bearishness. Meanwhile, the bulls are in the market to turn around the market trend and this recovery pattern may lead the pair to the upper resistance zone.
The interference of short-term traders to the $147.27 low level in the previous action has contributed to its bearish momentum in its recent price level.
This was overridden by the long-term traders as the price of USDJPY found a new resistance at the $149.06 value below the EMA as the 4-hour chart opens today.
If buyers could exchange hands with sellers and push the Yen price above the $149.98 resistance value, further selling pressure would be hibernated.
Additionally, the daily stochastic signals an uptrend, if the bulls could push harder and sustain the Yen price above the $149.98 previous high, the recovery pattern may reach the $152.00 supply level soon in its medium-term perspective.
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