USDJPY Price Pulls Back to Retest $105.2 Level Before Bullish trend Continues

USDJPY Price Analysis – October 14

The last week bearish scenario could be a pullback, the bullish trend may continue provided the bulls’ pressure penetrates the two dynamic resistances level upside and $106.0 level gives way to the price, then, the price may reach $106.7 price level, above just mention level is $108.0.USDJPY Market

Key levels:

Supply levels: $106.0, $106.7, $108.0

Demand levels: 105.2, $104.3, $102.1

 

USDJPY Long-term Trend: Bearish

The currency pair loses bullish momentum. USDJPY was on the bullish movement last week in the long-term outlook. The bulls were able to push the currency pair to the resistance level of $106.0 on October 08. The level holds the price and prevented a further price increase. An “evening star” candle pattern formed, which is a bearish reversal pattern. Big bearish candles emerge and the price decreases to the support level of $105.2.

USDJPY Daily chart, October 14

USDJPY is trading below the 9 periods EMA and 21 periods EMA as a sign of bearish momentum.  The two EMAs are not separated but rather interlocked as a sign of low volatility. The last week bearish scenario could be a pullback, the bullish trend may continue provided the bulls’ pressure penetrates the two dynamic resistances level upside and $106.0 level give way to the price, then, the price may reach $106.7 price level, above just mention level is $108.0. The demand levels to take note of are $105.2, $104.3, and $102.1.

USDJPY Medium-term Trend: Bearish

On the medium-term outlook, USDJPY is bearish. The bulls’ momentum could not break up the resistance level at $105.8 when the bulls’ momentum became weak. The bears take over the market and the price drop to the support level at $105.2. The buyers may take over the market provided the last-mentioned level holds.

USDJPY 4-hour chart, October 14

The two EMAs are separated and the price is trading below the 9 periods EMA and 21 periods EMA. The relative strength index period 14 is at 40 levels pointing up which indicates a buy signal.