USDJPY Price Analysis – July 31
The price has formed a “double Top” chart pattern on the daily time frame; that means the market direction is south. The Bears may push down the price to reach the previous low, demand level of $107.
Supply levels: $108, $109, $110
Demand levels: $107, $106, $105
USDJPY Long-term trend: Bearish
On the long-term outlook, USDJPY is bearish. Last week, the Bulls were in control of the USDJPY market and the bullish momentum drove the price up to the supply level of $108. The bullish momentum became weak and could not break up the supply level of $108. The Bears moved into the market with increased momentum and this is noticed with the strong bearish candle that emerged on July 30 at the supply level of $108.
The price has formed a “double Top” chart pattern on the daily time frame; that means the market direction is south. The price is trying to cross the 21 periods EMA downside as a sign of bearish trend while 50 periods EMA is below the two. The Bears may push down the price to reach the previous low, demand level of $107. The Stochastic Oscillator period 14 is above 80 levels and the signal lines ready to cross over and point down to establish a sell signal.
USDJPY Medium-term Trend: Bearish
On the 4-hour chart, USDJPY is bearish. The last week bullish trend made the currency pair to find resistance at $108 price level; this is the second time the price will be touching the level to form a double top pattern. The price is descending towards the $107 price level.
As at the moment, the price is consolidating directly on 21 periods EMA and the Stochastic is at 25 levels with the signal line pointing down to indicate sell signal.
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