USDJPY Price Analysis – July 09
The breakout at the supply level of $108 may expose the price to $109 and $111 price levels. In case the bears penetrate the demand level of $106 to the downside may decline the price to $105 and $103 price levels.
USDJPY Market
Key levels:
Supply levels: $108, $109, $111
Demand levels: $106, $105, $103
USDJPY Long-term Trend: Ranging
On the long-term outlook, USDJPY is ranging. The bulls were trying to break up the supply level of $108 last week with the formation of a strong daily bullish candle that tested the mentioned level. The bears defended the barrier at $108 level with the formation of a big daily bearish candle that engulfs the previous daily candle. Follow this scenario is the low momentum of both the bulls and bears that led to consolidation within $108 and $106 price levels.
The 9 periods EMA and 21 periods EMA are interlocked with each other and the price is trading directly on the two EMAs which indicate that both bears and bulls are not excited to trade USDJPY. The breakout at the supply level of $108 may expose the price to $109 and $111 price levels. In case the bears penetrate the demand level of $106 to the downside may decline the price to $105 and $103 price levels. The Relative Strength Index period 14 is at 50 levels with the signal lines showing no specific direction indicate that consolidation is in progress.
USDJPY Medium-term Trend: Ranging
On the 4-hour chart, USDJPY is ranging. The bears rejected the price breakout at the supply level of $108 on July 01 with the bearish engulfing candle at the mentioned level. The price decline with the aim to test the demand level of $106 but was unable before its momentum became weak and price consolidation commenced.
The price is moving over and around the two EMAs while the 9 periods EMA and 21 periods EMA are interlocked to each other which is the sign of consolidation. The Relative Strength Index is at 40 levels with the signal line parallel to the level which connotes price consolidation.
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