Both the Long-term and the Medium-term still trade in the bullish trend zone.
The currency pair might likely experience a trend reversal soon.
USDJPY Weekly Price Analysis – August 21
USDJPY pair is facing the upside at the moment, the price might likely experience a change in trend if the sellers can redouble their efforts and break down the $131.597, the price might retest a $126.361 low level.
Resistance levels: $137.700, $137.800, $137.900
Support levels: $131.300, $131.200, $131.100
USDJPY Long-term Trend: Bullish (1D)The currency pair is in a bullish trend in its long-term outlook. The formation of a bullish candle with a wick at the $135.887 resistance value as the 4-hourly session opens today affirms the bullish presence in the market.
Aggression from the bulls further moved the market price of the USDJPY up to a $137.228 high level slightly above the moving averages, an indication of an uptrend and a bullish market zone.
Meanwhile, the market price of USDJPY is pointing down in the overbought region of the daily stochastic; it implies that the buying pressure has ended already. This will compel the sell traders to resume the negative moves and $126.361 in the support level might be reached in the days ahead in the higher time frame.
Thus, the sell traders need to wait for this action to take place before taking a position.
USDJPY Medium-term Trend: Bullish (4H)On the 4-hourly chart, the market is in an upward move. The sustained bullish pressure pushed the pair further up to the $136.375 resistance level and sustained it during yesterday’s session.
There is a downward shift as the sellers return briefly and drop the market value of USDJPY down to a $136.277 low level as the 4-hourly session opens today.
The bulls moves in again and push the price up to a $137.228 high level after which the sell traders in-road and pulled down the price of the Yen to the $136.744 support level above the moving averages; this means that the bulls are getting weaker and the sellers are finding their way back into the market gradually.
Also, intensify by the daily stochastic is the fact that the market is overbought, we, therefore, expect the sellers to emerge to continue with the downward move, $126.361 in the support area or beyond might be the target in its medium-term perspective.
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