USDJPY Price Analysis – August 28
The breakout of the confluence at the supply level of $106 by the Bulls will expose the pair to the supply level of $107. Also, the breakdown of the price at the demand level of $105 will make the pair to find support at $103 level.
Supply levels: $106, $107, $108
Demand levels: $105, $103, $102
USDJPY Long-term Trend: Bearish
On the long-term outlook, USDJPY is bearish. USDJPY has been on the ranging movement for the past ten days. On August 23, the price broke down the demand level of $105, the price declined towards the low of $103. The mark was not reached before the Bulls interrupted the decrease in price. USDJPY price was pushed up back to the ranging zone within the $106 and $105 price levels.
The currency pair maintain its trading below the 21 periods EMA and 50 periods EMA, the two EMAs are well separated from each other to indicate an increase in bearish momentum. Further increase in the Bears’ momentum will break down the demand level of $105 and $103 price level may be reached. In case the Bulls gain more pressure, supply level of $106 may be broken up and expose the price to $107 level. However, stochastic oscillator period 14 is at 50 levels with the signal lines pointing to the north to indicate a buy signal.
USDJPY Medium-term Trend: Bearish
On the 4-hour chart, USDJPY is bearish. There was a bearish breakout from the consolidation level on August 23. The bearish momentum dropped the price sharply down towards the demand level of $103. A pin bar was produced on August 25 as a bullish reversal candle pattern and this triggered the price increase. The price pair rallied towards the two EMAs above the $105 price level.
The price is yet to break up the 21 periods EMA and 50 periods EMA but rather consolidating around the two EMAs. The Stochastic Oscillator period 14 is at 50 levels with the signal lines pointing down which indicates a sell signal.
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