USDJPY Price Analysis – September 16
The closing of the daily candle above the two EMAs will increase the price to $105.9, $106.7; further increase in the bulls’ momentum may lead the price to test $109.7.
Supply levels: $105.9, $106.7, $109.7
Demand levels, $105.2, $104.3, $103.0
USDJPY Long-term Trend: Bullish
The bears prevailed over the bulls in the course of consolidation that played out in the USDJPY market last two weeks. The price of the currency pair falls due to weakness in the strength of the US dollar. The demand level of $105.2 was penetrated and the price found support at the $104.3 price level. The bulls take over the USDJPY market at the beginning of this week. USDJPY price increases with the formation of strong bullish candles.
Today, the big daily bullish candle emerges and breaks up the resistance level of $105.2. The price has penetrated the dynamic resistance level of 9 periods EMA targeting the 21 periods EMA. The closing of the daily candle above the two EMAs will increase the price to $105.9, $106.7; further increase in the bulls’ momentum may lead the price to test $109.7. A pullback is expected along the way with the interruption of the bears. Looking downside, support levels will be found at $104.3 and $103.0.
USDJPY Medium-term Trend: Bullish
USDJPY is bullish in the 4-hour chart. Immediately after the breakout of the price at the consolidation zone, the bears exert more pressure, and the price decline to break down the support level of $105.2 and $104.3. The buyers oppose the price decrease at $104.3 level with the formation of a bullish engulfing candle.
The price reverse and increase to break up the two dynamic resistance level. The resistance level of $105.2 could not withstand the price. Currently, the pair is trading above the two EMAs targeting the resistance level of $106.7. The relative strength index period 14 is bending up at 60 levels to indicate a buy signal. Buy Stop may be placed at $105.575, Stop Loss at $105.064, and Take Profit at $106.656.