USDJPY Price Analysis – May 27
The breakout at the supply level of $108 by the bulls will expose the price to $109 and $111 price level. 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. The currency pair started a ranging movement on the daily chart last two weeks after it reached the supply level of $108. 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 bulls’ momentum and the bears’ momentum are at equilibrium. A bullish breakout is envisaged at the supply level of $108.
The two EMAs remain interlocked to each other and the price is trading on and around the 9 periods EMA and 21 periods EMA as a price consolidation signal. The breakout at the supply level of $108 by the bulls will expose the price to $109 and $111 price level. 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: Ranging
On the 4-hour chart, USDJPY is ranging. On May 11, the bulls pushed up the price to break up the $106 price level. The price increases towards the supply level of $108 but unable to penetrate the level. The bears were unable to break down the demand level of $106 due to low pressure. The ranging movement commenced within the levels.
The price is hovering over the 9 periods EMA and the 21periods EMA which indicates low volatility in the USDCHF market. The RSI is at 50 levels with the signal line pointing down to indicate a sell signal.
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