USDJPY Price Analysis – April 20
Should the Bears defend the resistance level of $129, price may reverse and face the support level of $128, $127 and $126. An increase in the bulls’ momentum may break up the resistance level of $129, the price may reach the resistance levels of $130 and $131.
USDJPY Market
Key levels:
Supply levels: $129, $130, $131
Demand levels: $128, $127, $126
USDJPY Long-term Trend: Bullish
On the long-term outlook, USDJPY is bullish. USDJPY was under a strong bullish pressure last weeks, the currency price closed at the former resistance level of $25 level with the hope from the traders that the price will penetrate the level upside at the opening of the market following week. The currency pair behaved as it was predicted. Bulls exerted more pressure and the resistance level of $128 was penetrated. Today, the price tests $129 price level and pull back.
As at the moment of writing this report, the price is trading above the 21 periods EMA and 9 periods EMA while the latter is above the former which indicates that the Bulls dominate the USDJPY market. Should the Bears defend the resistance level of $129, price may reverse and face the support level of $128, $127 and $126. An increase in the bulls’ momentum may break up the resistance level of $129, the price may reach the resistance levels of $130 and $131. However, the relative strength index period 14 is at 75 levels with the signal lines bending down to indicate the sell signal.
USDJPY Medium-term Trend: Bullish
USDJPY is bullish on the 4-hour chart. USDJPY price rallied towards the former resistance level of $125. The level could not hold the price, broke it up and touched the upper resistance level of $126. Bears could not oppose the bulls at $17 and $128, Price eventually tests $129 level.
In case bears were able to penetrate the support level of $127 downside, price will face the support levels of $126 and $125. However, the relative strength index period 14 is at 55 levels with the signal lines pointing down to indicate a sell signal.
