USD/JPY Resumes a Downward Move as It Faces Resistance at Level 105.50

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 is likely to decline because of rejection. On January 11 uptrend; a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates the Yen is likely to rise to level 2.0 Fibonacci extensions. This is the high of level 106.19.

Daily Chart Indicators Reading:
Presently, the SMAs are sloping upward indicating the uptrend. The index is at level 71 of the Relative Strength Index period 14. This indicates that the pair is now in the overbought region of the market.

USD/JPY Medium-term Trend: Bullish
On the 4-hour chart, the pair is in an upward move. On February 4 uptrend; a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that the Yen will rise to level 2.0 Fibonacci extension or level 106.44.

4-hour Chart Indicators Reading
The USD/JPY pair is currently below the 80% range of the daily stochastic. It indicates that the pair is in a bearish momentum. The Yen has fallen but may resume upward.

General Outlook for USD/JPY
USD/JPY has been rising for the past three days. The pair is facing rejection at level 105.50. The Yen is falling as a result of rejection. The coin is likely to move up after the retracement. However, the selling pressure will extend to the level 104.95.


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