USDJPY Price Analysis – May 04
Should the Bears defend the resistance level of $130, price may reverse and face the support level of $129, $128 and $127. An increase in the bulls’ momentum may break up the resistance level of $130, the price may reach the resistance levels of $131 and $132.
USDJPY Market
Key levels:
Supply levels: $130, $131, $132
Demand levels: $129, $128, $127
USDJPY Long-term Trend: Bullish
USDJPY is bullish on the long-term outlook. Bullish movement that commenced on March 11 continues till date. The currency pair has broken up the resistance levels of $126, $127 and $128. Bulls continue to exert more pressure on USDJPY pair and the price is increasing steadily. The price has increased to the resistance level of $130. Today, it pulls back as the bears dominates the market.
USDJPY continue its trading above the 21 periods EMA and 9 periods EMA, The latter is above the former which indicates that Bulls are in control of the USDJPY market. Should the Bears defend the resistance level of $130, price may reverse and face the support level of $129, $128 and $127. An increase in the bulls’ momentum may break up the resistance level of $130, the price may reach the resistance levels of $131 and $132. However, the relative strength index period 14 is at 64 levels with the signal lines bending down to indicate the sell signal.
USDJPY Medium-term Trend: Bearish
USDJPY is on the bearish movement on the 4-hour chart. USDJPY price was on ranging movement last week up till yesterday. Sellers prevailed today with the formation of strong daily bearish candle. Sellers are breaking down the support level of $129.
In case the bearish candle close below the support level of $129, then, bearish reversal may take place at the mentioned level. Price will face the support levels of $129 and $128. However, the relative strength index period 14 is at 39 levels with the signal lines pointing down to indicate a sell signal.
