USDJPY Avoids a Drop and Positions for Further Upward Movement

USDJPY Price Analysis – December 25

USDJPY avoids a drop below the monthly price level of 112.780 and is instead positioning itself for more upside movement. There was a failed higher price climb on the 26th of November after USDJPY worked its way upward to break the resistance at 114.500. A sudden slump sent the market crashing back to the 112.780 support level. However, USDJPY avoids a drop and has now recovered to push upward much more.

USDJPY Significant Levels

Resistance Levels: 115.500, 114.500
Support Levels: 112.780, 110.800

USDJPY Long Term Trend: Bullish

The market was forced upward after it escaped confinement below the 110.430 significant level. This led to a price surge in which USDJPY rose and violated several significant levels till it was blocked at 114.500. What happened next is that the market started undulating with the 112.780 significant level acting as a solid base for the market. The price sprung up past the 114.500 resistance, but it was rejected at 115.500.

The support level at 112.780 came in strong for the bulls again, preventing further drops. In addition, bulls were able to drive the market upward from this level. The Parabolic SAR (Stop and Reverse) has switched its dots below the daily candles to show an immediate upward trend in the market. The RSI (Relative Strength Index) is lending credence to the current market rise as its line climbs towards the overbought region.

USDJPY Short Term Trend: Bullish

On the 4-hour chart, USDJPY is now laying a siege below 114.500 as the market prepares to break to the upside of this level. The RSI indicator is currently hovering below the overbought region, which means there is still more space for upward thrust in the market. The price is anticipated to break beyond this level and rise further to test the 115.500 resistance level again.

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