USD/JPY Is in an Oversold Region, Buyers are Likely to Emerge

Estimated Reading Time: 2 minutes

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Azeez Mustapha

Updated: 13 October 2022

Key Resistance Levels: 111.00, 112.00, 113.00
Key Support Levels: 104.00, 103.00, 102.00

USD/JPY Price Long-term Trend: Bearish
USD/JPY is in a downward move. The price has broken below level 107.00 as the market resumed a downward move. The Yen has fallen and it is approaching level 104.25. A correction candle body tested 0.786 retracement level. It indicates the Yen will reverse at 1.272 Fibonacci level. USD/JPY reversal will not be immediate.

Daily Chart Indicators Reading:
The 21-day SMA and 50-day SMA are sloping downward indicating a bearish move. The Yen is currently at level 23 of the daily Relative Strength Index. The Yen has fallen to the oversold region of the market. Buyers are likely to emerge after a while.

USD/JPY Medium-term Trend: Bearish
The USD/JPY pair is in a descending channel. The market fell and resumed a sideways move above level 105.00. After retesting the resistance line, the downtrend resumed as price fell to the low of 104.25. The market has reached the oversold region as buyers are likely to emerge.

4-hour Chart Indicators Reading
The pair has fallen below 20% range of the daily stochastic. It implies that the market is in the oversold region of the market. Buyers have already emerged to push prices upward. The SMAs are also sloping downward. It indicates the downward move.

General Outlook for USD/JPY
The Japanese Yen has fallen to the oversold region. The selling pressure has been exhausted as buyers emerged in the oversold region. The price is also approaching the resistance line, a break above the resistance will accelerate price movement.

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