USD/JPY Reaches Oversold Region, May Resume Uptrend

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 has been in a downward move. On October 22, the retraced candle body tested the 61.8% Fibonacci retracement level. This implies that the Yen will continue the downward move to level 1.618 Fibonacci extension . In other words, the Yen will perhaps reach a low of 102.70. However, the downtrend may still linger.

Daily Chart Indicators Reading:
The 21-day SMA and the 50-day SMA are sloping downward indicating the downtrend. The pair has fallen to level 28 of the Relative Strength Index period 14. This indicates that the pair has fallen to the oversold region.


USD/JPY Medium-term Trend: Bearish
On the 4-hour chart, the pair has resumed downward move. On November 4 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. This indicates that the pair will reverse at 1.272 Fibonacci extensions. That is the low of level 103.84.

 4-hour Chart Indicators Reading
The USD/JPY pair is currently below the 20% range of the daily stochastic. It indicates that the pair has fallen into the oversold region of the market. The SMAs are sloping downward indicating the downtrend.

General Outlook for USD/JPY
USD/JPY is in a downtrend since October 8. The pair has fallen into the oversold region. Buyers are likely to emerge. There are indications of bullish signals.


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