USD/JPY Is in an Uptrend, Reaches Overbought Region at Level 110

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

USD/JPY Price Long-term Trend: Ranging
Recently, the Japanese Yen broke the resistance at level 108 and resumed an upward move. The market has reached level 109.258 at the time of writing. It appears the uptrend is likely to be terminated as price reaches the overbought region. However, if price reaches the overbought region, the YEN will resume a downward move.

Daily Chart Indicators Reading:
The 21-day SMA and 50-day SMA are sloping horizontally indicating the sideways move. The Yen has currently risen to level 68 of the daily Relative Strength Index. The Japanese Yen is close to the upper price range and may reverse.

USD/JPY Medium-term Trend: Bullish
The USD/JPY pair is in an upward move. A candle body is testing the 0.382 Fibonacci retracement level. This indicates that the Yen has a target price at extension 1.618 and 2.618. The Japanese Yen will first rise and reach level 1.618 extension levels. Yen upward move will terminate at 2.618 extension level.

4-hour Chart Indicators Reading
The pair is above 80% range of the daily stochastic. This implies that the market is in a strong bullish momentum. The market is also in the overbought region. The Yen has been overbought since June 2.

General Outlook for USD/JPY
The Japanese Yen broke the resistance at level 108. Unfortunately; the upward move is gradually being exhausted. The market seems to be a brief uptrend.



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