USDJPY Price Pulls Back at Resistance Level of $111, What Next?

USDJPY Price Analysis – April 07
Further increase in the bears’ momentum to break down the confluence at support level of $109 will lead to price reduction to $108 and $106 price level. The inability to break down the significant support level at $109 may retain the bulls dominating USDJPY market and it will increase to $111, $112 and $113 price levels

USDJPY Market
Key levels:
Supply levels: $111, $112, $113

Demand levels: $109, $108, $106

USDJPY Long-term Trend: bearish
USDJPY is bearish in the long-term outlook. The bulls were in control of the USDJPY Market last week. The currency pair increases and the price tested the resistance level at $111. The bulls’ momentum become weak and could not push the pair above the resistance level of $111. A bearish engulfing candle emerges, this triggers the price reduction towards the support level at $109.
USDJPY has penetrate the slow moving average (9 day EMA) moving towards the slow moving average (21 day EMA) which connotes that bears are gradually taking over the USDJPY market. Further increase in the bears’ momentum to break down the confluence at support level of $109 will lead to price reduction to $108 and $106 price level. The inability to break down the significant support level at $109 may retain the bulls dominating USDJPY market and it will increase to $111, $112 and $113 price levels.

USDJPY Medium-term Trend: Bearish
USDJPY is bearish on the 4-hour chart. The resistance level at $111 is tested by the bulls but the bulls’ pressure could not break up the barrier at the mentioned level. The mentioned level was defended by the bears and the price is moving towards the support level at $109.
The price is trading below the 9 periods EMA and the 21periods EMA, which indicates that the bears’ momentum is increasing. Meanwhile, the Relative Strength Index period 14 is at 40 levels with the signal line pointing down to indicate the sell signal.