The currency pair is in a bearish move both in the long-term and the medium-term outlook.
There has been some bullish effort in recent times, which is not strong enough to override the major bearishness in the market.
USDJPY Weekly Price Analysis – January 21
At the moment, the USDJPY faces the negative side as the bears aim to drag the market price to the support level of $111.200.
Resistance levels: $114.000, $115.000, $116.000
Support levels: $113.000, $112.000, $111.000
USDJPY Long-term Trend: BearishThe currency pair is in a bearish trend zone in its long-term perspective. The sustained bearish pressure pushed the currency pair down to $113.963 in the support area during yesterday’s session and sustained it.
A bearish candle at $114.077 in the support area opens today’s daily chart as the sellers continue to dictate the market at the present.
Activities from the bears further dropped the price of the USDJPY down to $113.625 in the support area as the journey down south continued.
The price of USDJPY which is down at $113.852 in the support area revolving below the two EMAs suggests that the bears are in control of the market at the moment.
The stochastic signal pointing down at around level 21% in the oversold region indicates that the momentum in the price of USDJPY is in a downtrend and buyers will soon emerge to push the price of USDJPY up in the future in the long-term and in this case, an uptrend.
USDJPY Medium-term Trend: Bearish
The currency pair is in a bearish trend zone in its medium-term outlook. The formation of a bullish candle with a wick at $113.805 in the resistance area as the 4-hourly chart opens today affirms the bullish presence in the market.
The impulse move by the buyers further moves the price of USDJPY up to $113.899 in the resistance area.
Exhaustion sets in as the bears in-road into the market and drop the Yen down to $113.857 in the support area.
The price is initially down at $113.798 in the support area which is below the two EMAs, an indication that the sellers are in control of the market at the moment.
The stochastic oscillator signals pointing down at around level 20% in the oversold region suggest that the momentum in the price of USDJPY is in a downtrend thereby buyers will soon emerge to change the trend of the market to an uptrend in the days ahead in the medium-term.
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