USDJPY Price Analysis – January 01
In case the Bulls were able to break up the supply level of $109, the price may increase to reach the supply level of $111. Consolidation may continue should the Bears defend the supply level of $109.
Supply levels: $108, $109, $111
Demand levels: $107, $106, $105
USDJPY Long-term Trend: Bearish
USDJPY is bearish on the long-term outlook. The bullish trend pushed the price to test the supply level of $109. The Bulls were unable to break up the supply level of $109; the level holds the price and consolidates for a few days. The Bears gained momentum and pushed down the price towards the demand level of $108. The demand level could not hold and the price broke down the $108 level and exposes the $107 demand level.
USDJPY price has penetrated the two EMAs downside and it is trading below the 21 periods EMA and 50 periods EMA as a sign that the Bears are taking over the market gradually. The demand level of $107 may be reached provided the Bears maintain their momentum. Should the Bulls interrupt the Bearish momentum, price consolidation may take place. The relative strength Index period 40 is at 40 levels with the signal lines pointing down to indicate a sell signal.
USDJPY Medium-term Trend: Bearish
USDJPY is bearish on the 4-hour chart. The currency pair was ranging in the last two weeks. The price has formed an ascending channel and there was a bearish breakout at the lower trend line of the channel. The price is declining down towards the demand level of $107.
The 21 periods EMAs has crossed the 50 periods EMA downside, the price is currently trading below the two EMAs targeting the demand level of $107. The RSI is at 20 levels with the signal line pointing up which may be a pullback.
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