USDJPY Price Dip Halts at Major Support Level

Market Analysis – April 25

The USDJPY currency pair has recently experienced a significant price dip that has paused at a major support level. The pair’s bearish trend, which began at the start of the year, has led to a notable decline in price.

USDJPY Key Levels

Demand Levels: 141.30, 136.80, 130.00
Supply Levels: 149.50, 158.10, 161.90

USDJPY Long-term Trend: Bearish

The bearish wave on USDJPY commenced with multiple technical forex signals. The Moving Averages periods 9 and 21 crossed at a resistance level of 158.10, indicating a reversal. This is followed by a break of the bullish trendline in February, further solidifying the bearish trend. The price action forms distinct lower highs, except in March when it formed relatively equal highs due to its interaction with the support level of 149.50.

The price has reached the demand level of 141.30, with the Moving Averages periods 9 and 21 dominating the market. Notably, the Hull Butterfly Oscillator reveals the market is oversold at the test of the demand level. The price bounced off the demand level and rose above the Moving Average period 9, indicating a retracement.

USDJPY Short-term Trend: Bearish

On the lower timeframe, a bullish shift in market structure has formed, with the Moving Average showing a new uptrend. Although the overall direction remains bearish, the persistence of the bullish structure in the lower timeframe could lead to a higher timeframe for bullish reversal. The price is expected to retrace towards the higher timeframe Moving Average period 21.

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