USDJPY Price Analysis – March 20
USDJPY is on the uptrend movement facing a significant resistance of $112. In case the level holds, the currency pair may fall back to the nearest support level which is $110 price level.
Supply levels: $112, $114, $117
Demand levels: $111, $107, $104
USDJPY Long-term trend: Bullish
USDJPY has been steadily increasing since January 4 on the daily chart, shortly after it bottomed at $107. The Bulls dominates the USDJPY market. The Bullish engulfing Japanese candles formed on February 01 and February 11 strengthened the bullish momentum that made the currency pair rallied towards the supply level of $110 and extended to $112 supply level. There was a pullback at the supply level of $112 on March 5 before it continued its uptrend movement. Today, the market opened with a daily bullish candle which is an indication that there is a tendency for the currency pair to touch the supply level of $112 and break out.
The Stochastic Oscillator period 14 is above 50 levels, with the signal lines pointing up indicates buy signal. In case there is a bullish breakout at the supply level of $112, the currency pair will target $114 price level. A rebound at the supply level of $112 will push down the USDJPY to the demand level of $110.
USDJPY Short-term Trend: Bullish
On the 4-hour chart, USDJPY is on the Bullish trend. The bulls have been maintaining their momentum by touching the drawn trend line and bounce. It touched the trend line yesterday as a sign of pullback or price retracement.
Today, the currency is triggering uptrend movement with the formation of bullish candles. In addition, the Stochastic Oscillator reached oversold yesterday but currently pointing up at 50 levels which indicates buy signal.
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