USD/JPY Reaches Oversold Region, Buyers Are Expected to Emerge

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 index is falling by making a series of lower lows and lower highs. On December 28, the pair made a lower high to retest level 103.80 and resume the downward move.

Daily Chart Indicators Reading:
Presently, the SMAs are sloping downward indicating the downtrend. The index is at level 40 of the Relative Strength Index period 14. This indicates that it is in the downtrend zone and below the centerline 50. The downward move conntinues.

USD/JPY Medium-term Trend: Bearish
On the 4-hour chart, the pair is in a downward move. On December 30 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that the Yen will decline to level 1.272 Fibonacci retracement level. That is, Yen will fall to level 102.71 and reverse.

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 Yen has fallen into the oversold region of the market.
The SMAs are sloping downward indicating the downtrend.

General Outlook for USD/JPY
The Yen’s downward move is reaching bearish exhaustion. According to the Fibonacci tool, the pair will fall but will reverse at level 102.71.


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