USDJPY Price Analysis – October 07
The price is increasing towards the resistance level of $106.7. The price may carry out retracement to the broken level of $105.8 before the continuation of the bullish trend to $106.7.
Supply levels: $106.7, $108.0, $109.7
Demand levels, $105.8, 105.2, $104.3
USDJPY Long-term Trend: Bullish
USDJPY is on the bullish movement in the long-term outlook. The currency pair was consolidating within the resistance level of $105.8 and the support level of $105.2 last week. The buyers gathered more momentum to break up the $105.8 level; this scenario took place on October 05 with the formation of a strong bullish daily candle which increases the price towards the resistance level at $106.7.
September 07, the big daily bullish candle emerges and breaks up the resistance level of $105.8. The price is increasing towards the resistance level of $106.7. The price may carry out retracement to the broken level of $105.8 before the continuation of the bullish trend to $106.7. Above just mentioned levels are $108.0 and $109.7 resistance levels. The price may encounter barriers at the support levels of $105.8, $105.2, and $104.3. The relative strength index period 14 with the signal line is pointing up strongly at 60 levels indicate buy signal.
USDJPY Medium-term Trend: Bullish
On the medium-term outlook, USDJPY is bullish. The bulls terminated the ranging movement on October 05. On the 4-hour chart, the price breaks up the $105.8, the price retracement was carried out today and it is currently increasing towards $106.7. A further price increase is envisaged as the price has penetrated the resistance level of $105.8.
The two EMAs are separated and the price is trading above the 9 periods EMA and 21 periods EMA. The relative strength index period 14 is above 60 levels which indicates that the bulls are in control of the USDJPY market.