The currency pair could still decrease despite its positive moves.
The bulls may have temporal control soon
USDJPY Weekly Price Analysis – September 9
The USDJPY market price is likely to drop as the market is overbought already. If sellers return massively and all the current resistance holds the daily candle may break down to $132.556 and may extend to the $131.517 support level and beyond.
Resistance levels: $144.400, $144.500, $144.600
Support levels: $131.500, $131.400, $131.300
USDJPY Long-term Trend: Bullish
The USDJPY is trading in an uptrend market zone in its higher time frame. The sustained bullish pressure pushed the currency pair up to a $144.991 supply level during yesterday’s session and sustained it.
Today’s daily chart opens with a bullish candle at the $143.755 resistance value which is above the moving averages; an indication of an uptrend.
However, there is a possibility for the pair to decline in price as the market is overbought already. 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 $131.597 low 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.
Today’s 4-hourly chart opens on a bearish note at the $144.331 support level which later dropped to a $143.981 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 currency pair is pointing down in the overbought region of the stochastic; this means that the buying pressure has ended, 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 $136.396 level soon in its medium-term perspective.
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