USD/JPY Reaches Overbought Region, May Retest Level 104.48

12 January 2021 | Updated: 12 January 2021

Key Resistance Levels: 111.000, 112.000, 113.000
Key Support Levels: 104.000, 103.000, 102.000

USD/JPY Price Long-term Trend: Bullish
The USD/JPY pair has been in an upward move since June. Today, the pair has risen to level 104.25. The bulls have also pushed the price above the SMAs which suggests a further upward movement of the Yen. The Yen will rise as the RSI is at level 58.

USD/JPY – Daily Chart

Daily Chart Indicators Reading:
Presently, the SMAs are sloping downward indicating the downtrend. The index is at level 58 of the Relative Strength Index period 14. This indicates that it is in the uptrend zone and above the centerline 50. The pair is likely to further rise.

USD/JPY Medium-term Trend: Bullish
On the 4-hour chart, the pair is in an upward move. The Yen is in the overbought region of the market. On January 8 uptrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that the Yen will rise to level 1.272 Fibonacci extension level. That is, Yen will rise and reverse at level 104.48 and reverse.

USD/JPY – 4 Hour Chart

4-hour Chart Indicators Reading
The USD/JPY pair is currently above the 80% range of the daily stochastic. It indicates that the pair is in a bullish momentum. The Yen has reached the overbought region of the market. The SMAs are sloping upward indicating the uptrend.

General Outlook for USD/JPY
The Yen is presently rising on the upside. It is trading in the overbought region of the market. USD/JPYis expected to reach level 104.48 and reverse but the reversal will not be immediate.


Note: Learn2Trade.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

 

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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.