USDJPY Price Analysis – August 14
In case the demand level of $105 holds the price may reverse at the mentioned level and soar to the north. Should the Bears gain enough pressure to break down the demand level of $105, the price may reach the demand level of $103.
Supply levels: $106, $107, $108
Demand levels: $105, $103, $102
USDJPY Long-term trend: Bearish
USDJPY is bearish on the long-term outlook. USDJPY made a strong bearish move on the daily chart for more than two weeks. The Bearish momentum increased last week and the demand level of $105 was penetrated on August 12, the breakdown seems to be a fake as the Bulls quickly interrupted and a massive daily bullish candle was produced at a key demand level of $105. This returned the price to retest the supply level of $106 on August 13 but unable to break up the level, so the price dropped to the previous low of $105.
The USDJPY market was dominated by the Bears today. The price continues its trading below the 21 periods EMA and 50 periods EMA with the two following the direction of the trend. However, the Stochastic Oscillator period 14 is at 25 levels with the signal lines pointing up to indicate a buy signal. In case the demand level of $105 holds the price may reverse at the mentioned level and soar to the north. Should the Bears gain enough pressure to break down the demand level of $105, the price may reach the demand level of $103.
USDJPY Medium-term Trend: Bearish
On the 4-hour chart, USDJPY is bearish. The Currency pair had a fake brake out at the demand level of $105 last week and the Bulls did not allow a further decrease in price. A strong bullish candle emerged and the price retested the broken level of $106. The just mentioned level holds and the price dropped towards the $105 price level again.
The Stochastic Oscillator period 14 is at 50 levels with the signal lines bend down which indicates sell signal and a further reduction in price.
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