The price of USD/JPY has been an interesting trend on the currency market as the movement over the recent days has seen several rapid changes. The instability of its market price can be attributed to the growing tensions in Asia and Afghanistan while the pandemic ranges on. On the daily chart of the USD/JPY market, the bears and bulls have been in a conflicting situation with one unable to surmount the other. This market reaction has produced an equilibrium level with a high inclination to change with the market pattern. The case of the market price is a dicey one which shows that any attempt to increase pressure by the bulls would result in an upthrust of the price to about $111 or even $112. While a decrease in bears’ pressure would result in a decline in price to levels of about $107 or $108.
In the conflict of bears and bulls, there seems to be no victor so far. As the bears try so hard to reduce the support level which is at $108, there is no progress in this regard. Uncertainties also abound as to the reason for its failure even with the various market changes experienced. Bulls also are not faring well as the continuous trial to push up the resistance level to $110 ends up in a letdown leaving both momentum prices weak and at $109. The above description is however the long-term market trend. For traders, the outlook of this market remains skeptical with shifts bound to occur at any slight moment. The market is currently a ranging market considering the levels of activities happening at the moment. It keeps oscillating around nine periods EMA and twenty-one periods EMA thus attesting to its varying levels.
USD/JPY price chart. Source: Tradingview
USD/JPY Medium-term Tendency Outlook
Its outlook is quite similar to that of the long-term owing to the fact of the volatility of the market. The overview of the medium-term depicts it also as a changing market as market influences have become numerous. However, the momentum of both bears and bulls is maintained here while conflict rages. From the outlook of a four-hour chart, the bulls are obstructing a decline at $108 thus pushing the price one dollar higher. The price is then seen to be consolidating at $109. This is possible only as a result of the failure of pressure from both bears’ and bulls’.
At this level, trading also occurs around a nine and twenty-one-period EMA while suggesting or indicating no price direction. This outlook as usual is subject to rapid changes and dynamic shifts which has been noted in recent times. Although the JPY is fairly safe, performance against the US dollar has not been encouraging these past weeks.
It has seen several strategic falls and rises, with its price hovering. This is expected to continue till the latter end of the year. However, chances of its price increasing should not be discarded as there is a possibility of it happening.