USDJPY Price Analysis – May 25
When the bears gain more pressure the support level of $126 may be broken downside and the price may decrease to face the support levels of $125, and $124. An increase in the bulls’ momentum may break up the resistance level of $127, the price may reach the resistance levels of $128 and $129.
USDJPY Market
Key levels:
Supply levels: $127, $128, $129
Demand levels: $126, $125, $124
USDJPY Long-term Trend: Bearish
USDJPY is bearish on the long-term outlook. Immediately when the currency pair tested the resistance level of $130 twice. The bears gain momentum and price starts falling. The former support level of $129 was broken downside. USDJPY is currently testing the support level of $126 in which it may be penetrated provided bears exert more pressure.
USDJPY is trading below the 21 periods EMA and 9 periods EMA at distant. The latter has crossed the former downside which indicates that Bears are dominating the USDJPY market. When the bears gain more pressure the support level of $126 may be broken downside and the price may decrease to face the support levels of $125, and $124. An increase in the bulls’ momentum may break up the resistance level of $127, the price may reach the resistance levels of $128 and $129. The relative strength index period 14 is at 45 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 currency pair touched the resistance level of $131 two times as a sign of double top chart pattern. The price decline towards the support level of $127. The price is currently pulling back. There is tendency for the price to decline further.
Price is trading below the 9 periods EMA and 21 periods EMA. The relative strength index period 14 is at 41 levels with the signal lines pointing up to indicate a buy signal.
