USDJPY Price Analysis – December 18
There is probability for the price to test the supply level of $109 and break it up to expose the supply level of $111. In case the supply level of $109 holds, the price may reverse.
Supply levels: $109, $111, $112
Demand levels: $108, $107, $106
USDJPY Long-term Trend: Bullish
USDJPY is bullish on the long-term outlook. The week before the last one, the price was consolidating very close to the former supply level of $108. On 12 December, the Bulls increased their pressure, the price increases and broke up the supply level of $108 now a demand level. The strong bullish candle emerged pushes the price towards the supply level of $109. Following this breakout was the formation of many bullish candles.
The price is trading above the 21 periods EMA and 50 periods EMA with the two EMAs pointing in the direction of the price and this indicates that the Bulls are in control of the USDJPY market. There is probability for the price to test the supply level of $109 and break it up to expose the supply level of $111. In case the supply level of $109 holds, the price may reverse. The relative strength Index period 40 is at 60 levels with the signal lines pointing up to indicate a buy signal.
USDJPY Medium-term Trend: Bullish
USDJPY is bullish on the 4-hour chart. The Bulls eventually prevailed over the Bears when the price was consolidating at $108 price level within the horizontal channel formed two weeks ago. The Bulls dominated the market last week and the price soared towards the supply level of $109.
The two EMAs are well separated from each other and the price is trading above the 21 periods EMA and 50 periods EMA which indicates that the Bulls momentum is increasing in the USDJPY market.
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