USD/JPY Breaks Below Level 108.00, May Resume Selling Pressure

USD/JPY Breaks Below Level 108.00, May Resume Selling Pressure

Key Resistance Levels: 111.000, 112.000, 113.000
Key Support Levels: 104.000, 103.000, 102.000

USD/JPY Price Long-term Trend: Bearish
The USD/JPY pair was earlier in an uptrend. The upward move was terminated when the Yen reached the high of level 111.00. The currency price has fallen and broken below the moving averages. This is an indication of a further decline of the pair.

USD/JPY – Daily Chart

Daily Chart Indicators Reading:
The Yen price is below the 21-day and 50-day SMAs which indicates that the currency will fall. The pair has fallen to level 38 of the Relative Strength Index period 14. This implies the market is approaching the oversold region. The 21-day and 50-day SMAs are sloping upward but making a U-turn.

USD/JPY Medium-term Trend: Bearish
On the 4-hour chart, the price bars are below the moving averages which are sloping downtrend. This is a typical example of a downtrend. On April 8 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement level. It indicates that the market will fall to level 1.618 Fibonacci extension or level 107.83.

USD/JPY – 4 Hour Chart

4-hour Chart Indicators Reading
USD/JPY pair has fallen below the 30% range of the daily stochastic. It indicates that the pair is in a bearish momentum. The pair has been in the oversold region since April 13. The 21-day and 50-day SMAs are still on a downward move.

General Outlook for USD/JPY
The Yen is in a strong downward move. The downtrend may extend below the Fibonacci extension. Presently, the price indicator has signified that the market will fall to level 107.83.


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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.