USDJPY Price Analysis – July 03
The USDJPY price may reverse at $106 demand level as the pin bar candle formed at the level, also, in case the Bulls increase their momentum and break up the $107 level. Should the Bears defend the $107 level, consolidation may continue.
Supply levels: $108, $109, $110
Demand levels: $107, $106, $105
USDJPY Long-term trend: Bearish
On the long-term outlook, USDJPY is bearish. On June 25, USDJPY bottomed at the demand level of $106 with the formation of the Pin bar candle. The price pulled back with the aid of the Bulls’ momentum and then it moved up towards the supply level of $108 and reached the mark. On July 02, a bearish engulfing candle formed; this is pushing the price down towards the previous low. Today, the price declined to $107 level and pulled back to respect the demand level.
The USDJPY price is trading below the 21 periods EMA and the 50 periods EMA which indicates that the Bears are still in control of the market. The Stochastic Oscillator period 14 is above 50 levels with the signal lines bending down to indicate a sell signal. USDJPY may be pushed down to the demand level of $105 in case the Bears gained more pressure to break down the $107 and $106 levels. Should the Bulls defend the $107 level the price may consolidate for a certain period.
USDJPY Medium-term Trend: Bearish
USDJPY is bearish, on the 4-hour chart. USDJPY price bounced off the supply level of $108. The price decreased and reached the demand level of $107. The price pulled back to test the two EMAs after which it started consolidating.
The USDJPY is trading below the 21 periods EMA and 50 periods EMA at a close range which implies that the Bulls momentum increased. The Stochastic period Oscillator 14 period 14 is above 25 levels with the signal lines pointing up to indicate buy signaling.
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