USDJPY Price Analysis – January 23
The bearish trend may continue provided the Bears maintain or increase their momentum and the demand level of $108 may be reached. In case the Bulls defend the just mentioned level, the price may bounce, otherwise, the demand level of $107 may be the target.
Supply levels:, $109, $111, $112
Demand levels: $108, $107, $106
USDJPY Long-term Trend: Bearish
On the long-term outlook, USDJPY is bearish. The target level of $111 was reached as it was predicted on January 15. The level could not hold the pair and it was penetrated upside. The USDJPY price increased towards the supply level of $112. The Bulls lose the momentum, a bearish engulfing candle formed and the price reversed, retested the broken level of $111. Today, the Bears dominate the market and the price is currently moving down towards the demand level of $109.
USDJPY is penetrating the 21 periods EMA downside aiming at the 50 periods EMA so that the price may start trading below the two EMAs. The bearish trend may continue provided the Bears maintain or increase their momentum and the demand level of $108 may be reached. In case the Bulls defend the just mentioned level, the price may bounce, otherwise, the demand level of $107 may be the target. The relative strength Index period 40 is at 50 levels with the signal lines pointing down to indicate a strong sell signal.
USDJPY Medium-term Trend: Bearish
USDJPY is bearish on the 4-hour chart. Two weeks ago, the currency pair was bullish and the price was ranging above the supply level of $109. Last week, the Bulls could not push up the price. The Bears gained more momentum and push down the price to penetrate the former demand level of $109 and it is moving down towards the demand level of $108.
USDJPY price has penetrated the two EMAs downside and continues to trade below the 21 periods EMA and the 50 periods EMA. The RSI is at 30 levels with the signal line pointing up which indicates buy signal.
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