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USDJPY Price; Can This Be a Pullback or Price Reversal?

USDJPY Price Analysis – May 19

In case the bears were able to break down the support level of $108 and the daily candle close below the $108 level, it will decrease the price to $107 support level, further decrease will push price to $105. In case the bears’ pressure fails to break down the $108 level, it may results to bullish movement towards the resistance level at $109, $111 and $113.

USDJPY Market

Key levels:

Supply levels: $109, $111, $113

Demand levels: $108, $107, $105

USDJPY Long-term Trend: Bearish

USDJPY is bearish on the long-term outlook.  The currency pair has been bearish for some time and it is descending towards the support level of $107 last week. On May 12, the bulls opposed the price declination with the formation of strong big daily bullish candle and the price pulled back to $108 level. However, pullback is inevitable in a trending market.

USDJPY daily chart, May 19

The 9 periods EMA is crossing the 21 periods EMA downside and the pair is trading around the 9 periods EMA and 21 periods EMA indicating price decrease and bearish movement. In case the bears were able to break down the support level of $108 and the daily candle close below the $108 level, it will decrease the price to $107 support level, further decrease will push price to $105. In case the bears’ pressure fails to break down the $108 level, it may results to bullish movement towards the resistance level at $109, $111 and $113.

 USDJPY Medium-term Trend: Bearish

USDJPY is bearish on the 4-hour chart. The bulls could not break up the resistance level of $109 due to weak momentum of the bulls. The price started decreasing to the support level of $108. Breaking down the mentioned level will expose the price to $107 level. It seems the bears’ momentum is becoming weak.

USDJPY 4 hour chart, May 19

The price is pulling back and trading between the 9 periods EMA and the 21periods EMA, the Relative Strength Index period 14 is at 50 levels with the signal line pointing up to indicate a buy signal.