USD/JPY Price Analysis – August 31
Further increase in the bulls’ pressure may break up the resistance level of $110.0 and the upside target levels could be $110.2 and $110.4 levels.
USD/JPY Long-term Trend: Ranging (Daily Chart)
Resistance Levels: $111.0, $111.5, $112.0
Support Levels: $109.0, $108.5, $108.0
USD/JPY is ranging on the long-term outlook. The currency pair has been obeying the buyers’ command since a few days ago but were unable to dominate the market as the currency keeps hovering around the 9-day and 21-day moving averages. However, the bulls equally attempted breaking up the resistance level at $110.2 but the level holds the price and ended up closing below the $110.0 level. Since then, the currency pair continues to oscillate within the $109 and $110 price levels.
USD/JPY Price Analysis: Can USD/JPY Breaks to the Upside?
The 9-day moving average is fairly joined together with the 21-day moving average and the currency pair is now trading above both moving averages indicating a consolidating market. Therefore, a further increase in the bulls’ pressure may break up the resistance level of $110.0 and the daily candle may close above this level. However, once this plays out, the bulls may increase the price to the resistance levels of $111.0, and further increase may push the price to $111.5 and $112.0 respectively.
However, should in case the bulls’ pressure is interrupted by the bears’ pressure, the ranging market may continue or the bearish movement may commence towards the lower boundary of the channel. Moreover, the Relative Strength Index (14) is moving above 60-level with the signal line pointing up which indicates a buy signal. But if the bears were able to break down the support level of $109.5 and the daily candle close below the channel, the currency pair may touch the support level of $109.0; then further decrease may likely push USD/JPY to the additional supports at $108.5 and $108.0 respectively.
USD/JPY Medium-term Trend: Ranging (4H Chart)
USD/JPY is moving sideways on the 4-hour chart. The currency pair continues to move above the 9-day and 21-day moving averages as the Relative Strength Index (14) prepares to cross 55-level. However, if the bulls push up the market price to test the resistance level of $110.2, USD/JPY could touch the potential resistance at $110.4 and above.
However, if the currency pair slides below the 9-day and 21-day moving averages, this may cause the price to cross below the lower boundary of the channel and could open door to the support level of $109.7 and below.