USDJPY Price Analysis – April 01
The breakdown of demand level of $106 will expose the price to the demand levels of $105 and $104. In case the demand level of $106 holds, USDJPY may reverse and target $108, $109 and $111.
Supply levels: $108, $109, $111
Demand levels: $106, $105, $104
USDJPY Long-term Trend: Bearish
USDJPY is bearish on the long-term outlook. USDJPY price reached the supply level of $111 on March 25 under bullish pressure. The Bullish momentum became weak as the price reached the just mentioned supply level. The candle pattern emerged called “evening star”; it is a bearish reversal pattern. A strong massive bearish candle emerged and the price descended towards the demand level of $109. The bearish momentum extended to the demand level of $106 after it penetrated $108 level.
The 9 periods EMA is crossing the 21 periods EMA downside. USDJPY has penetrated the two EMAs downside and it is trading below it. The breakdown of demand level of $106 will expose the price to the demand levels of $105 and $104. In case the demand level of $106 holds, USDJPY may reverse and target $108, $109 and $111. The Relative Strength Index period 14 is at 40 levels with the signal lines pointing down which indicates a sell signal.
USDJPY Medium-term Trend: Bearish
USDJPY is on the bearish momentum on the 4-hour chart. The price was ranging within the supply level of $111 and demand level of $109 last two weeks. There was a bearish breakout on March 26 and the price decline to test the demand level of $106.
The price is trading below the 21 periods EMA and the 9 periods EMA which indicates that the bears are in control of the USDJPY market. The RSI is at 30 levels with the signal line pointing down to indicate sell.
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