USD/JPY Continues Downtrend, May Reach the Low of 103.75

11 December 2020 | Updated: 11 December 2020

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 since June. The price has been falling from level 105.50. On November 18 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement indicates that the Yen will fall and reach level 1.618 Fibonacci retracement. That is the low of level 102.34.

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 45 of the Relative Strength Index period 14. This indicates that the Yen is in the downtrend zone and below the centerline 50.

USD/JPY Medium-term Trend: Bearish
On the 4-hour chart, the pair is in a downward move and has reached bearish exhaustion. On December 10, a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that the Yen will fall and reverse at level 1.272 Fibonacci retracement level. That is at the low of 103.75, the Yen is likely to reverse.

USD/JPY – 4 Hour 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 is in bearish momentum. The SMAs are sloping downward indicating the downtrend.

General Outlook for USD/JPY
The USD/JPY pair is in a downward move. The Fibonacci tool has indicated a reversal of the pair at level 1.272 Fibonacci extension. That is at level 103.75.



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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.