USDJPY Price Analysis – October 10
The price may range downside within the channel to retest the lower trend line which may eventually place the price below the demand level of $106. Should the Bulls increase their momentum to break the upper trend line, the price may reach the supply level of $108.
Supply levels: $108, $109, $111
Demand levels: $107, $106, $105
USDJPY Long-term Trend: Bullish
On the long-term outlook, USDJPY is bullish. USDJPY was bearish last two weeks, the currency price closed at the demand level of $106 with the hope from the traders that the price will penetrate the level downside at the opening of the market following week. The Bulls defended the $106 price level and a strong bullish daily candle emerged that pushed the price back to the previous high above the former supply level of $107. The price action has formed a descending channel on the daily chart. The price is ranging within the channel.
The price crossed the two EMAs upside to test the upper trend line. As at the moment of writing this report, the price is trading above the 21 periods EMA and 50 periods EMA which indicates that the Bulls dominated the USDJPY market. The price may range downside within the channel to retest the lower trend line which may eventually place the price below the demand level of $106. Should the Bulls increase their momentum to break the upper trend line, the price may reach the supply level of $108. However, the stochastic oscillator period 14 is at 50 levels with the signal lines bending up to indicate the buy signal.
USDJPY Medium-term Trend: Bullish
USDJPY is bullish on the 4-hour chart. USDJPY price reached a low level of $106 on October 04. The level held the price and it bounced, rallied towards the former supply level of $107. The level could not hold the level, broke it up and touched the upper trend line of the channel formed.
The Stochastic Oscillator period 14 is above 75 levels with the signal lines pointing up to indicate a buy signal.
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