USDJPY Price Analysis – October 31
The USDJPY awaiting a breakout which may be at the supply level of $108 and the $109 price level will be exposed. In case the supply level of $108 holds, the price may drop towards the demand level of $107.
Supply levels: $108, $109, $111
Demand levels: $107, $106, $105
USDJPY Long-term Trend: Ranging
USDJPY is ranging in the long-term outlook. The bullish momentum pushed up the USDJPY price to reach the supply level of $108 on 15 October; that was the high reached on the 10th of July and the 1st of August. The level has been a strong barrier for the price to break up. The price started consolidating at the level since October 16. Last week was not an exemption as the bulls were not able to break up the level. Yesterday, the bulls broke up the supply level of $108 but could not sustain their momentum, the bears resisted the breakout and the price dropped below the level and closed as an inverted pin bar.
The 21 periods EMA and 50 periods EMA are well separated with the former above the later and the price trading above the two EMAs which indicates that the Bulls are still in control of the USDJPY market. The USDJPY awaiting a breakout which may be at the supply level of $108 and the $109 price level will be exposed. In case the supply level of $108 holds, the price may drop towards the demand level of $107. However, the stochastic oscillator period 14 is below 80 levels with the signal lines pointing down to indicate the sell signal.
USDJPY Medium-term Trend: Ranging
USDJPY is on the ranging mode on the 4-hour chart. On the 4-hour chart, the price was on the ranging mode last 2 weeks. It continues last week up till yesterday. Strong fundamental events may be required to make the pair rally.
USDJPY continues trading over and around the two EMAs and the Stochastic Oscillator period 14 is at 20 levels with the signal lines pointing down to indicate a sell signal.
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