USDJPY Price Analysis – February 05
In case the daily bullish candle closes above the supply level of $109, retracement may be carried out and the price may find its target at the resistance level of $111. Should the supply level of $109 holds, the price may bounce off.
Supply levels: $109, $111, $112
Demand levels: $108, $107, $106
USDJPY Long-term Trend: Bullish
USDJPY is bullish on the long-term outlook. On January 31, a daily strong bearish candle formed and broke down the demand level of $108. The price declined towards the $107 price level. Before it reaches the just mentioned demand level, a candle pattern formed which is called “Inside bar”. This is a bullish reversal candle. The price reversed with the formation of big bullish candles and the price is testing the previous high of $109 as at the moment.
USDJPY is trading above 21 periods EMA and 50 periods EMA with the former above the later; this indicates that the bullish momentum is strong. In case the daily bullish candle closes above the supply level of $109, retracement may be carried out and the price may find its target at the resistance level of $111. Should the supply level of $109 holds, the price may bounce off. The relative strength Index period 14 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 interrupted the bearish trend experienced in the USDJPY market two weeks ago. The Bears lose their pressure after it broke down the $108 price level. The Bulls took over the market and push up the price to test the supply level of $109.
USDJPY has crossed upside the 21 periods EMA and the 50 periods EMA. The Relative strength index period 14 is at 70 levels with the signal line pointing up which indicates a buy signal.
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