USDJPY Price Analysis – December 24
The price has already broken out at the support level of $105 decreasing towards the support level of $103.2; further increase in the bears’ momentum may drop the price at the low support level of $101which is the low of 2016.
Supply levels: $103.8, $104.6, $105
Demand levels: $103.2, $102.1, $101.0
USDJPY Long-term Trend: Ranging
USDJPY is bearish on the monthly chart. The currency pair has been bearish throughout this year 2020. The bearish pressure increases and the price is decreasing accordingly. The price reached the high of the year in February 2020; the resistance level of $111 was reached and the bulls could not maintain the momentum. The bears push down the price below the dynamic support level. The bears hold to the USDJPY market and the price decreases to the low of $103 support level after breaking down many support levels.
The price has already broken out at the support level of $105 decreasing towards the support level of $103.2; further increase in the bears’ momentum may drop the price at the low support level of $101which is the low of 2016. The relative strength index period 14 is bending down at 30 levels indicating a sell signal. In the year 2021, the price may decrease further to reach the support level of $101.
USDJPY Weekly Chart: Bearish
On the weekly chart, USDJPY is under the bears’ control. The above chart clearly shows the position of the buyers and the sellers in the year 2020. The bears dominate the market and the price obeys their command. The bulls push up the price to test the $111 price level which is the high of the year. The price action formed a bearish engulfing candle and the price declined to test the $103 support level. The price pulled back to retest the previous high at $111 but the bears defended the level. The bears mounted pressure and the price decline continuously to support level of $103.
USDJPY is trading below the 9 periods EMA and 21 periods EMA and the relative strength index period 14 is displaying a sell signal. The price may continue its bearish trend in the coming year 2021, the price may reach the low of $101 support level before reversing.