USDJPY Price Analysis – August 07
The price may reverse at the demand level of $105 as long as the Bulls defend the mentioned level. Failure to defend the level by the Bulls may lead to a further decrease in USDJPY price and this may reach the demand level of $103.
Supply levels: $106, $107, $108
Demand levels: $105, $103, $102
USDJPY Long-term trend: Bearish
On the long-term outlook, USDJPY is bearish. As it was predicted last week the price direction was bearish. The double top chart pattern formed last week was a bearish reversal; this triggered the Bears’ momentum, the price was pushed down towards the demand level of $107, broke down and the bearish trend extended to the demand level of $106. The level could not hold the price and it was penetrated and the demand level of $105 was reached.
There was a price pullback yesterday with the formation of the daily bullish candle. On the daily chart, a bearish candle has emerged which means the bear may dominate the market today. The price may reverse at the demand level of $105 as long as the Bulls defend the mentioned level. Failure to defend the level by the Bulls may lead to a further decrease in USDJPY price and this may reach the demand level of $103. The Stochastic Oscillator period 14 is below 20 levels and the signal lines ready to cross over and point up to establish a buy signal.
USDJPY Medium-term Trend: Bearish
On the 4-hour chart, USDJPY is bearish. The Currency pair was under the pressure of the Bears after the formation of the double top pattern. The price penetrated the former demand levels of $107 and $106 and a low level of $105 was reached.
The price pulled back to retest the broken level of $106. The bearish movement continues and the price is approaching the previous low. The Stochastic Oscillator period 14 is at 50 levels with the signal lines bend down which indicates sell signal.
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