USDJPY Price May Break Out at Resistance Level of $104.6

USDJPY Price Analysis – December 09

The breakout at the resistance level of $104.6 may increase the price to the $105 and $105.7 resistance levels. Should the buyers unable to break up the $104.6 level, the bears may break down the $103.8 support level, and the $103.2 and $102.1 level may be tested.

Key levels:

Supply levels: $104.6, $105, $105.7
Demand levels: $103.8, $103.2, $102.1

USDJPY Long-term Trend: Ranging

The currency pair is in a ranging mode. USDJPY is range-bound within the resistance level of $104.6 and the support level of $103.8; this scenario started two weeks ago when the price falls from the high of $105.7 to the support level of $103.8. The bears’ momentum became weak and could not push the price through the support level of $103.8, then the bulls managed to push up the price to retest the resistance level of $104.6 but unable to penetrate. The price started a ranging movement within the mentioned two levels.

The breakout at the resistance level of $104.6 may increase the price to the $105 and $105.7 resistance levels. Should the buyers unable to break up the $104.6 level, the bears may break down the $103.8 support level, and the $103.2 and $102.1 level may be tested. The two EMAs are close to each other and the price is trading around the 9 periods EMA and 21 periods EMA. The relative strength index period 14 is flat at 50 levels indicating that ranging movement is in progress.

USDJPY Medium-term Trend: Bearish

The ranging movement is in progress in the 4-hour chart. The bulls have pushed up the price to test the key resistance level three times. Likewise, the bears have pushed down the price to test the support level of $103.8 three times. The price is heading towards the resistance level at $104.6.

USDJPY is trading above the 9 periods EMA and 21 periods EMA and the relative strength index period 14 is displaying a buy signal at 60 levels. Buy Stop can be placed at $104.372, Profit at $104.630, and Stop Loss at $104.091.