USDJPY Price Analysis – May 18
In case the sellers gain momentum to break down the support level of $128, price may decrease to face the support level of $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: Bearish
USDJPY is bearish on the long-term outlook. The currency pair tested the resistance level of $130 twice. The first touch was on April 28, it consolidates briefly before the second touch was carried out on May 09. The price has formed a double top chart pattern. The candle pattern mentioned is a bearish reversal signal. The resistance level of $130 is holding the price, and bearish trend may commence.
USDJPY continue is trading below the 21 periods EMA and 9 periods EMA at close contact. The latter is crossing the former downside which indicates that Bears are preparing to take over the USDJPY market. In case the sellers gain momentum to break down the support level of $128, price may decrease to face the support level of $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 50 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. The ranging movement within USDJPY market commenced on April 28. The bulls’ pressure fails and could not break up the $130 resistance level. Later, the bears’ momentum become strong and the support level of $129 is broken downside and the price is heading towards $126 level.
Price is trading below the 9 periods EMA and 21 periods EMA. The relative strength index period 14 is at 33 levels with the signal lines pointing down to indicate a sell signal.
