USD/JPY continues selling pressure after a retest at level 104.80

Estimated Reading Time: 2 minutes

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Azeez Mustapha

Updated: 13 October 2022

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 103.50.

Daily Chart Indicators Reading:
The 50-day SMA and 21-day SMA are sloping downward indicating the bearish trend. The Yen is currently at level 32 of the daily Relative Strength Index. This indicates that the market is approaching the oversold region and below the centerline 50.

USD/JPY Medium-term Trend: Bearish
On the 4-hour chart, the Yen was earlier in a sideways trend between level 105.30 and 106.50. The current downtrend reaches the low of level 104.00. Buyers pushed price upward but it retested 104.800 and resumed the downward move. The downtrend is likely to continue.

4-hour Chart Indicators Reading
The Yen is currently below the 80% range of daily stochastic. It is in a bearish momentum. The SMAs are sloping downward indicating the downtrend.

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 a level at 2.0 Fibonacci extension level. That is, the pair will reach level 103.50.

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