USDJPY Price Analysis – November 20
In case the lower trend line of the wedge is broken downside, the price may find support at the $107 price level. Should the Bulls interrupt the Bears at the current price level, the pair may reverse towards the upper trend line of the channel.
Supply levels: $108, $109, $111
Demand levels: $107, $106, $105
USDJPY Long-term Trend: Bearish
On the long-term outlook, USDJPY is bearish. The bullish breakout that occurred on November 05 at the supply level of $108 could not push up the currency pair to the supply level of $109 before the Bears interrupted the Bulls. On November 08, an evening star candle pattern formed; this triggered the bearish momentum and the price was returned below $108 price level. The price action has formed a chart pattern called ascending wedge.
The currency pair has penetrated the 21 periods EMA targeting the dynamic support level of 50 periods EMA; the price is currently trading in-between the two EMAs as a sign of an increase in the bears’ momentum. In case the lower trend line of the wedge is broken downside, the price may find support at the $107 price level. Should the Bulls interrupt the Bears at the current price level, the pair may reverse towards the upper trend line of the channel. However, the stochastic oscillator period 14 is at 50 levels with the signal lines pointing down to indicate the sell signal.
USDJPY Medium-term Trend: Bearish
USDJPY is on the bearish movement on the 4-hour chart. The Price action on the 4-hour chart formed an ascending channel chart pattern. The price has been trading within the channel t0uching both upper and lower trend lines. There was a fake breakout on November 18, the Bears interrupted with the formation of the bearish engulfing candle, the price decreases below the two EMAs.
USDJPY price is trading below the 21 periods EMAs and 50 periods EMA. The Stochastic Oscillator period 14 is at 30 levels with the signal lines bending up to indicate a buy signal.
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