USDJPY Price Analysis – January 08
The currency pair may carry out price retracement to the broken level before it continues its bullish trend and it may place the price at $109 – $111. In case the bears defend the resistance level of $109, the price may commence consolidation.
Supply levels: $109, $111, $112
Demand levels: $108, $107, $106
USDJPY Long-term Trend: Bullish
USDJPY is bullish on the long-term outlook. The currency pair was bearish last two weeks and it was pushed down to the zone of $107. The bulls interrupted the bearish movement and the Bulls showed up with the formation of strong daily bullish candles. At the early stage of today, the Bears were in charge of the USDJPY market. Later, the Bulls prevailed and the price broke up the former resistance level of $108.
The pair has penetrated the two EMAs upside and it is currently trading above the 21 periods EMA and 50 periods EMA as an indication that the Bulls are taking over the USDJPY market. The currency pair may carry out price retracement to the broken level before it continues its bullish trend and it may place the price at $109 – $111. In case the bears defend the resistance level of $109, the price may commence consolidation. The relative strength Index period 40 is at 50 levels with the signal lines pointing up to indicate a strong buy signal.
USDJPY Medium-term Trend: Bullish
USDJPY is bullish on the 4-hour chart. The currency pair has formed a bullish reversal chart pattern “W”; this is what responsible for the bullish breakout experienced today at $108 price level. The price is currently targeting the resistance level of $109
The 21 periods EMAs is making an attempt to cross the 50 periods EMA upside, while it is currently trading above the two EMAs. The RSI is above 60 levels with the signal line pointing up which indicates buy signal.
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