#USDJPY Price: In Case $130 Level Holds, Price May Change Direction (11 MAY 2022)
USDJPY Price Analysis – May 11
In case the sellers gain momentum to break up the resistance level of $130, price may increase to face the resistance level of $131, and $132. An increase in the bears’ momentum may break down the support level of $129, the price may reach the support levels of $128 and $127.
USDJPY Market
Key levels:
Supply levels: $130, $131, $132
Demand levels: $129, $128, $127
USDJPY Long-term Trend: Bullish
USDJPY is bullish on the long-term outlook. The currency pair has tested the resistance level of $130 twice. The first touch was on April 28 and the second touch was on May 09. Meaning that a double top chart pattern formed. The candle pattern mentioned is a bearish reversal signal. If the resistance level of $130 holds, bearish trend may commence.
USDJPY continue its trading above the 21 periods EMA and 9 periods EMA at close contact. The latter is above the former which indicates that Bulls are in control of the USDJPY market. In case the sellers gain momentum to break up the resistance level of $130, price may increase to face the resistance level of $131, and $132. An increase in the bears’ momentum may break down the support level of $129, the price may reach the support levels of $128 and $127. However, the relative strength index period 14 is at 62 levels with the signal lines bending down to indicate the sell signal.
USDJPY Medium-term Trend: Ranging
USDJPY is on the ranging movement on the 4-hour chart. USDJPY price commences a ranging movement when the price reached the high of $130. The bulls’ pressure fails and could not break up the resistance level of $130. Likewise, the bears’ momentum became weak and the support level of $129 holds the price.
In case the daily bearish candle close below the support level of $129, then, bearish reversal may take place at the mentioned level. Price will face the support levels of $129 and $128. However, the relative strength index period 14 is at 42 levels with the signal lines pointing down to indicate a sell signal.
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