USD/JPY Has Fallen to the Oversold Region at Level 104.86, Uptrend Likely

USD/JPY Has Fallen to the Oversold Region at Level 104.86, Uptrend Likely

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 retested level 105.50 and resumed downward. The Yen has fallen to level 104.87 at the time of writing. The selling pressure will persist if the price breaks below the SMAs. Already, the price has broken the 50-day SMA and it is approaching the 21-day SMA.

USD/JPY – Daily Chart

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 49 of the Relative Strength Index period 14. This indicates that there is a balance between supply and demand.

USD/JPY Medium-term Trend: Bearish
On the 4-hour chart, the pair has fallen to the oversold region of the market. On November 12 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement level. This indicates that the market will fall to level 1.618 Fibonacci extensions. Perhaps, the market will resume a fresh uptrend as it is in the oversold region.

USD/JPY – 30 Min Chart

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 has been on a downward move. The pair has fallen to the oversold region of the market. Perhaps buyers are likely to emerge at the oversold region. Presently, there are bullish signals at the bottom of the chart.



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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.