USD/JPY Reaches the Overbought Region, May Reverse at Level 111.37

1 April 2021 | Updated: 1 April 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 has continued its upward move. Presently, the Yen has risen to level 110.96. The uptrend is reaching bullish exhaustion. On March 10, a retraced candle tested the 78.6% Fibonacci retracement level. The retracement implies that the Yen will rise but reverse at level 1.272 Fibonacci extension or level 110.32.

USD/JPY – Daily Chart

Daily Chart Indicators Reading:
The pair is at level 81 of the Relative Strength Index period 14. The pair has reached the overbought region. It has no sufficient room to rally on the upside as sellers may emerge in the overbought region. The 21-day SMA and 50-day SMA are sloping northward indicating the uptrend.


USD/JPY Medium-term Trend: Ranging
On the 4-hour chart, the pair has continued its sideways move. The Yen resumed a sideways move after rejection at level 110.94. On March 31, a retraced candle body tested the 78.6% Fibonacci retracement level. It indicates that the market will rise and reverse at 1.272 or level 111.37.

USD/JPY – 4 Hour Chart

4-hour Chart Indicators Reading
USD/JPY pair is above the 80% range of the daily stochastic. It indicates that the pair is in a bullish momentum. The Yen is now in the overbought region of the market. The 21-day and 50-day SMAs are sloping upward indicating an uptrend.

General Outlook for USD/JPY
On March 31, the Yen was resisted at level 110.96 which compelled it to resume sideways move. However, the Yen upward move is doubtful as it is in the overbought region of the market. The Fibonacci tool has indicated a possible reversal at level 1.272 Fibonacci extension or level 111.37.



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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.