USDJPY Price Analysis – May 02
The price is currently facing the lower trend line at $110 level. The breakout is imminent; the Bears can only breakout at $110 (lower trend line) in case their momentum is increasing more than before otherwise the currency pair may bounce again and face the upper level.
Supply levels: $112, $114, $117
Demand levels: $110, $107, $104
USDJPY Long-term trend: Ranging
On the long-term outlook, USDJPY is on the sideways movement. USDJPY has been range-bound for more than sixty days within the supply levels of $112 and the demand level of $110.The bullish momentum pushed the USDJPY price up to the supply level of $112 on March 06. The Bulls lost the momentum and could not break up the barrier at the $112 level. The currency pair descended down to the $110 level on March 25 where the pair bounced and move up to touch the upper trend line at $112 levels. The price is currently facing the lower trend line at $110 level.
USDJPY is trading over and around the 21 periods, EMA and 50 periods EMA and the two EMAs are close to each other which indicate that the currency pair is on the sideways movement. The Relative Strength Index period 14 is moving up and down and currently at 50 levels slightly bending up which indicates buy signal. The breakout is imminent; the Bears can only breakout at $110 (lower trend line) in case their momentum is increasing more than before, otherwise, the currency pair may bounce again and face the upper level.
USDJPY Medium-term Trend: Ranging
On the 4-hour chart, USDJPY is on the sideways movement. The price movement on the 4-hour chart has formed a bullish rectangle pattern. As it can be seen the USDJPY price is bouncing when it touches the lower and upper trend line of the rectangle.
The Relative Strength Index is unstable in its movement as it connotes that sideways movement is ongoing within the channel.
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