USDJPY Buyers Are Fighting to Keep the Price Up

USDJPY Analysis – December 8

USDJPY buyers are fighting to keep the price on its uptrend. The market has enjoyed a tremendous period of bullish activity. However, indications show that the bullish regime might be coming to an end. The market rally started on March 11 when the USD/JPY broke beyond the 116.120 key level. From that time into November, the price kept rising despite the occasional pullbacks. However, just at the end of November, USDJPY broke below the trendline, much to the fear of the bulls.

USDJPY Significant Levels

Resistance Levels: 152.230, 137.550
Support Levels: 135.060, 116.120

USDJPY Long-Term Trend: Bullish

Since the end of the first quarter of the year, USDJPY buyers have been in charge of the market. They have done an excellent job of preparing the market for an uptrend and managing the market’s need for a pullback. With that, the market has been sliding upward. Notwithstanding, the price has now slipped and dropped below the trendline.

USDJPY is now fighting to have the price back above the trendline, and they sense danger in letting the coin stay longer than necessary below the ascending trendline. The trajectory of the power line on the EFI (Elders Force Index) is dipping after it first rises above the zero level and then dips back below it. There is a long line-up of Parabolic SAR (Stop and Reverse) dots above the daily candlesticks to indicate the drop.

USDJPY Short-Term Trend: Bullish

There are positive signs on the 4-hour chart as the price has bounced off the 135.060 key level. Nevertheless, the market is blocked at 137.550, but the bulls don’t look like giving up yet and will test 137.550 again before proceeding to test 139.240 and getting back above the ascending trendline. There are more Parabolic SAR dots below the candlesticks on the 4-hour timeframe.

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