USDJPY Price Analysis – June 17
Ranging movement may continue until the bears or bulls gain enough pressure. There may be a bearish breakout at the demand level of $106 in case the bears gain more momentum and it will expose to $105 and $103 price 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 was bearish last week; It found resistance at $109 supply level after the breakout from the consolidation zone. The bears took over the market with the formation of the bearish engulfing candle on June 08. The price declined towards the demand level of $106. The bearish momentum became weak, likewise the bulls’ pressure; this leads to price consolidation at the $106 price level throughout last week.
USDJPY is trading below the 9 periods EMA and 21 periods EMA at close range to the EMAs and the two EMAs are interlocked to each other, which indicates low volatility in the USDJPY market. Ranging movement may continue until the bears or bulls gain enough pressure. There may be a bearish breakout at the demand level of $106 in case the bears gain more momentum and it will expose to $105 and $103 price levels. The price may encounter resistance at $108, $105, and $103 price levels should the bulls prevail. 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
On the 4-hour chart, USDJPY is consolidating. The bulls lose momentum at the supply level of $109 when the bears defended the level. A bearish candle pattern formed, called “Marubozu” at the supply level of $109. The price dropped sharply to the demand level of $106 but could not break it down. The price started consolidating at the same level.
The price is trading on 9 periods EMA and the 21periods EMA which indicates that consolidation is in progress. The RSI is at 40 levels with the signal line pointing down to indicate a strong sell signal.
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