USDJPY Price Analysis – May 20
In case the bulls gather enough momentum to break up the supply level of $108, the next targeted levels will be $109 and $111. Should the bears break down the demand level of $106, the price may decrease to $105 and $103 levels.
Supply levels: $108, $109, $111
Demand levels: $106, $105, $103
USDJPY Long-term Trend: Ranging
USDJPY is on the ranging movement in the long-term outlook. USDJPY was bullish the last two weeks after it reached the demand level of $105. The former supply level $106 was penetrated to the upside. The bullish momentum became low, the bearish pressure was weak and this led to the consolidation of price within the range of $108 and $106 price levels.
The two EMAs are interlocked to each other and the price is trading on and around the 9 periods EMA and 21 periods EMA as a sign of consolidation. In case the bulls gather enough momentum to break up the supply level of $108, the next targeted levels will be $109 and $111. Should the bears break down the demand level of $106, the price may decrease to $105 and $103 levels. The Relative Strength Index period 14 is at 50 levels with the signal lines showing no specific direction which indicates that consolidation is ongoing in the USDJPY market.
USDJPY Medium-term Trend: Bullish
USDJPY is bullish on the 4-hour chart. After USDJPY price broke up the former supply level of $106 on May 10 and the price rallied towards the supply level of$108, the bullish momentum became weak and turning back.
The price is trading in between the 9 periods EMA and the 21periods EMA which indicates that the bearish momentum and bullish momentum are gradually becoming equal. However, the RSI is at 50 levels with the signal line pointing up to indicate a buy signal.
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