USD/JPY Reaches Overbought Region at Level 106.60, May Likely Fall

Key Resistance Levels: 111.00, 112.00, 113.00
Key Support Levels: 104.00, 103.00, 102.00

USD/JPY Price Long-term Trend: Bearish
The Yen is in an upward move from its previous low at level 105.50. The pair may face rejection at level 106.50. The Yen fell to level 105.50 and corrected upward. The price has been rising ever since.

Daily Chart Indicators Reading:
The 21-day SMA and 50-day SMA are sloping downward move indicating a downtrend. The Yen is currently at level 51 of the daily Relative Strength Index. The Yen is in the downtrend zone and above the centerline 50.

USD/JPY Medium-term Trend: Ranging
The USD/JPY pair is in a sideways move. The Yen has risen and approaching level 106.60. The price is said to reach the overbought region. A downward movement of prices is expected.A red candle body tested the 0.50 Fibonacci retracement level.The Yen will reach 2.0 Fibonacci extension then may reverse.

4-hour Chart Indicators Reading
The pair is above 80% range of the daily stochastic. The Yen is in the overbought region of the market. The pair is in a strong bullish momentum. The SMAs are also sloping horizontally. The market is currently facing rejection at level 106.50.

General Outlook for USD/JPY
The Japanese Yen has risen approaching level 106.60. The price may later fall because the market has reached the overbought region. The price action is showing bearish signals. The market may fall at level 106.60.

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