USDJPY Price Consolidates at $105.2 and $105.9, Awaiting a Breakout

USDJPY Price Analysis – September 30

The closing of the daily candle above the resistance level of $105.9 will increase the price to $106.7; further increase in the bulls’ momentum may lead the price to test $109.7. However, the breakdown of the support level at $105.2 will expose the price to $104.3 and $103.0.

USDJPY Market

Key levels:

Supply levels: $105.9, $106.7, $109.7
Demand levels, $105.2, $104.3, $103.0

USDJPY Long-term Trend: Ranging

USDJPY is consolidating within the resistance level of $105.9 and the support level of $105.2. The price of the currency pair falls due to weakness in the strength of the US dollar. The demand level of $105.2 was penetrated and the price found support at the $104.3 price level. The bears lose pressure at the support level of $104.3 on September 21. The bulls take over the USDJPY market and the price increases with the formation of strong bullish candles.

The big daily bullish candle emerges and breaks up the resistance level of $105.2. The price increase was interrupted on September 25 and the consolidation movement started. The closing of the daily candle above the resistance level of $105.9 will increase the price to $106.7; further increase in the bulls’ momentum may lead the price to test $109.7. However, the breakdown of the support level at $105.2 will expose the price to $104.3 and $103.0.

USDJPY Medium-term Trend: Ranging

The momentum of the bulls and that of the bears are operating at an equilibrium level. In other words, the price is consolidating in the 4-hour chart. USDJPY was bullish the last two weeks in the 4-hour chart. Immediately after the breakup of the price at the former supply level of $105.2, the bullish momentum became weak and the bulls’ momentum could not drive the price upward. The bears’ momentum could not push the price downside. The consolidation movement begins.

The two EMAs are tightly close and the price is hovering over and around the 9 periods EMA and 21 periods EMA. The relative strength index period 14 is not displaying a specific direction which indicates that consolidation is in progress.