USD/JPY Makes a Retest at Level 107.360, May Resume a Downward Move

Estimated Reading Time: 2 minutes

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Azeez Mustapha

Updated: 13 October 2022

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
USD/JPY pair is currently in a sideways move between the levels of 110 and 106. The pair has fallen to level 106.573 and resumed upward. The price corrected to level 107.553 and resumed are sideways move. Given this correction, the market will continue its downward movement. Perhaps, the Yen will move to level 106.

Daily Chart Indicators Reading:
The 21-day SMA and 50-day SMA are sloping horizontally. It indicates a sideways move. The Yen is currently at level 45 of the daily Relative Strength Index. The Japanese Yen is still in the downtrend zone and above the centerline 50. The market is rising after a downward move.

USD/JPY Medium-term Trend: Bullish
The USD/JPY pair is currently on a downward move. The selling pressure will have to be exhausted before the resumption of the uptrend. It is because the market is in a range-bound movement. A candle body tested 0.50 Fibonacci retracement level. It indicates that the Yen will rise and reach a high of 2.0 Fibonacci retracement level. A buy order will follow after the selling pressure is exhausted.

4-hour Chart Indicators Reading
The pair is below 80% range of the daily stochastic. The Yen is on a downward move. The SMAs are also sloping upward. The upward move indicates an uptrend. The market is still on a downward move.

General Outlook for USD/JPY
The Japanese Yen is range-bound since April. It is currently on a downward move, and we are expected to buy at the end of the expiration of the selling pressure.

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