USDJPY Price May Rise to $105.7; Triple Bottom Chart Forms

USDJPY Price Analysis – December 02

Should the buyers increase their momentum, the resistance level of $105.0 will be reached, and it may be penetrated upside and incline to $105.7 and $106.7. In case the resistance level of $105.0 holds, the price may reverse and face the support levels at $104.3, $103.2, and $102.1.

Key levels:

Supply levels: $105, $105.7, $106.7
Demand levels: $104.3, $103.2, $102.1

USDJPY Long-term Trend: Bullish

The bears were in control of the USDJPY market for more than two weeks. The bearish momentum placed the pair at the support level of $103.2 on November 06. The bulls defended the mentioned level with the formation of a strong and massive bullish candle that carries the price from the $103.2 support level to the $105.7 resistance level. The bears opposed the price increase and the price returned to the previous low of $103.2. At the moment, the price is breaking up the $104.3 level which indicates that the bulls are increasing their momentum gradually.

Should the buyers increase their momentum, the resistance level of $105.0 will be reached, and it may be penetrated upside and incline to $105.7 and $106.7. In case the resistance level of $105.0 holds, the price may reverse and face the support levels at $104.3, $103.2, and $102.1. The currency pair is penetrating the two dynamic support levels upside and it is trading above the 9 periods EMA and 21 periods EMA which connotes an increase in the bulls’ pressure.

USDJPY Medium-term Trend: Bearish

The bulls are gaining upper hand in the USDJPY markets. The USDJPY price action seems to form a “W” chart pattern in the 4-hour chart; this is a bullish chart pattern. The chart pattern sits on the bullish trend line. It is currently moving towards the resistance level of $105.

USDJPY is trading above the 9 periods EMA and 21 periods EMA and the relative strength index period 14 is displaying a sell signal which is a pullback. Buy Stop can be placed at $104.736, Profit at $104.968, and Stop Loss at $104.293.