USD/JPY Faces Rejection at Level 109.80, May Resume Sideways Move

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

USD/JPY Price Long-term Trend: Bullish
For the past 48 hours, the Yen has been in an upward movement. The pair rebounded above level 108.50 to reach the recent high. The upward move is facing resistance at level 109.80. The uptrend will resume if price breaks the minor resistance. Perhaps a retest of the overhead resistance is likely.

Daily Chart Indicators Reading:
USD/JPY price has risen to level 59 of the Relative Strength Index period 14. The Yen is in the uptrend zone and capable of rising on the upside. The pair is above the 21-day and 50-day SMAs which indicates that the currency pair will rise. The uptrend is currently facing resistance at level 109.80.

USD/JPY Medium-term Trend: Bullish
On the 4-hour chart, the Yen has risen to the previous high at level 109.80. The pair is facing rejection at the recent high as price retraces and resumed consolidation near the resistance level. On May 3 downtrend; a retraced candle body tested the 50% Fibonacci retracement level. It indicates that the Yen will rise to level 2.0 Fibonacci extension or level 110.98. From the price action, the current uptrend is facing rejection at level 109.80.

4-hour Chart Indicators Reading
USD/JPY pair is above the 80% range of the daily stochastic. The Yen is trading in the overbought region of the market. The stochastic is sloping downward indicating a possible downward move of the pair. The 21-day and 50-day SMAs are sloping upward indicating the uptrend.

General Outlook for USD/JPY
USD/JPY is an upward move. Today, the pair is retesting the resistance level of May 3. If price breaks this level, the uptrend will continue on the upside. The sideways move will continue if the pair faces rejection at the recent high. The pair is still stuck below the resistance at 109.80 at the time of writing.


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