USD/JPY Failed to Hold the Bearish Momentum Below 110.45 level
July 15, 2021|The Forex Secret –USDJPY is one of the most traded currency pairs that is going through extreme volatility from the US CPI this week.
The US economy is going on a track of recovery with a lot of fundamental support but analysts think that the US dollar is overwhelmed and its strength against other currencies makes no sense.
In that case, can USDJPY move down? Let’s see the complete analysis from the forex secret team.
USD/JPY Bears are Active
USD/JPY failed to hold the bullish pressure that took the price strongly down below the 111.00 key resistance level. The recent reason behind the bulls’ failure is that the bullish trend was not supported by any impulsive pressure. As a result, the price came down with an impulsive bearish pressure below the channel support and trading within the dynamic 20 EMA.
As long as the price is trading within the dynamic 20 EMA and 110.45 support level, it has a higher possibility of coming lower. Moreover, in the indicator window, Aroon Down (red line) is below the Aroon Up (blue line) indicating that sellers are active in the price and ready to take the price lower.
Is USD/JPY A Sell?
Based on our findings, USDJPY has a higher possibility of coming lower in the coming days towards the 108.47 support level. However, the bearish possibility is valid as long as the price is trading below the 110.45 Resistance level only.