USDJPY Is Overbought and Targets the 131.450 Key Level

USDJPY Analysis – June 2

USDJPY is overbought and aims for the 131.450 key level. While trading is taking place so close to this key level, the Stochastic oscillator is already indicating that the region of overbought conditions has been reached. The buyers tried to continue their bullish inclination upward. However, selling traders want to take a more prominent position in the USDJPY market.

USDJPY Key Levels

Resistance Levels: 131.450, 126.390
Support Levels: 121.180, 109.010

USDJPY Long Term Trend: Bullish

The continuation of the bullish trend has increased its impact on the market for yen. A ranging trend channel was established for the asset price before the beginning of the bullish setup. Despite this, a bullish breakthrough was seen in the market due to this action. The bulls were able to push the price pair higher, above the 121.180 critical level. Additional testing led to an increase in overflow at this level.

The bullish journey continued as the value broke through the 127.390 key level. The bears began to depreciate the price. This, however, has halted the bullish engagement in the market. Following price progress to the 131.450 critical level, the buyers are withheld from engaging forward. On the daily chart, prices are in an overbought range, which means that selling pressure has gone down.

USDJPY Short Term Trend: Bearish

On the four-hour time frame chart, the bears are forecasted to drive the price level down to 126.390 as buying tension decreases. Even if its pressure is starting to ease up, the Moving Average Convergence and Divergence (MACD) indicator is still pointing to a price setting in a positive direction. Traders should anticipate a rebound at the critical level of 131.450 when the market opens.

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