USD/JPY Exhausts Selling Pressure, Upward Move 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 is on a downward move. A green candle body tested a 50% Fibonacci retracement level. The Yen will fall and reach a low of 2.0 Fibonacci extension level. In other words, the downtrend will extend to the low of level 103.12.

Daily Chart Indicators Reading:
The 50-day SMA and 21-day SMA are sloping horizontally indicating a sideways move. The Yen is currently at level 40 of the daily Relative Strength Index. This indicates that the market is in the downtrend zone and below the centerline 50.

USD/JPY Medium-term Trend: Bullish
On the 4-hour chart, the pair is facing rejection at level 106.50. The pair is on a downward move. The Yen retested level 105.80 and resumed the downward move. The price has fallen to the oversold region. The market may likely rise.

4-hour Chart Indicators Reading
The Yen is currently below the 20% range of daily stochastic. It is in a bearish momentum and approaching the oversold region of the market. The SMAs are sloping sideways indicating the uptrend.

General Outlook for USD/JPY
The USD/JPY pair is now in a downward move. According to the Fibonacci tool, the Yen will fall and reach level 2.0 Fibonacci extension level. Nevertheless, the Yen has reached the oversold region and may likely rise.



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