USD/JPY Breaks Support: Bearish Momentum Building
USD/JPY is currently in a clear downtrend. The price has broken both the 34 and 89 EMA, which are reliable trend indicators. When the price is below both of these lines, it usually shows that the sellers are in control of the market. Additionally, the slope of the 34 EMA is starting to turn down, converging with the 89 EMA, which further reinforces the bearish momentum.
Key Support and Resistance:
I see strong support at the 155.00 area, an important psychological level that the price has responded to in the past. Conversely, the 157.50 - 158.00 area is currently a short-term resistance area, where the 34 EMA and 89 EMA are exerting pressure to prevent a recovery.
Momentum Analysis:
The recent bearish candle with a long body shows overwhelming selling pressure. However, the latest candle has a rather long lower shadow, which signals that buyers have started to step in at the low price zone around 155.50. This could be an early sign of a short-term consolidation or recovery.
Key Support and Resistance:
I see strong support at the 155.00 area, an important psychological level that the price has responded to in the past. Conversely, the 157.50 - 158.00 area is currently a short-term resistance area, where the 34 EMA and 89 EMA are exerting pressure to prevent a recovery.
Momentum Analysis:
The recent bearish candle with a long body shows overwhelming selling pressure. However, the latest candle has a rather long lower shadow, which signals that buyers have started to step in at the low price zone around 155.50. This could be an early sign of a short-term consolidation or recovery.
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