USDJPY Price Analysis – April 4
In case the demand level of $110 holds and the bulls increase their momentum, the pair will continue its upward movement towards $112 supply level.
Supply levels: $112, $114, $117
Demand levels: $110, $107, $104
USDJPY Long-term trend: Bullish
USDJPY is bullish on the long-term outlook. The bears were able to place the coin at the demand level of $110 on March 22. A Japanese candle pattern formed that is called Morning star; this is a bullish reversal candle pattern. This candle pattern indicates that the Bulls are ready with high momentum to propel the coin towards the supply level of $112. The coin broke up the dynamic resistance level of 21-period EMA and 50 periods EMA facing $112 level.
USDJPY is already above the 21 periods EMA and 50 periods EMA and the two EMAs are gradually separating from each other. The Relative Strength Index period 14 is at 60 levels, with the signal line pointing down to indicates sell signal which may be a pullback. In case the bulls increase their momentum, the currency pair will break up the supply level of $112 and expose the $114 supply level. Should the $112 supply level holds, the currency pair will range back towards the previous low.
USDJPY Medium-term Trend: Bullish
On the 4-hour chart, USDJPY is on the Bullish trend. The bearish trend on the 4-hour chart ended at the demand level of $110. The bottom twizer candle pattern formed which propel the currency pair up, the dynamic resistance level was broken upside. The currency pair is consolidating at $111 price level.
The currency pair is trading above the 21 periods EMA and 50 periods EMA and the two EMAs well separated from each other connotes strong bullish momentum in the USDJPY market.
The Relative Strength period 14 is at 60 levels with the signal line bending down to indicate sell signal which may be a price retracement.
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