USD/JPYResumes Uptrend, Battles Resistance at Level 108

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

USD/JPY Price Long-term Trend: Ranging
USD/JPY pair is currently in a sideways move between the levels of 110 and 106. Since on May 19, the bulls have been testing level 108 to break it but to no avail. Rather, the market has been in a sideways move below the resistance at 108. A break above level 108 will catapult price to reach level.

Daily Chart Indicators Reading:

The 21-day SMA and 50-day SMA are sloping horizontally indicating the sideways move. The Yen is currently at level 53 of the daily Relative Strength Index. The Japanese Yen is still in the uptrend zone and above the centerline 50. The market is currently falling after resistance.


USD/JPY Medium-term Trend: Bullish
The USD/JPY pair has resumed its upward move. A correction candlestick tested the 0.114 Fibonacci retracement level. This indicates that the pair will rise and reach a high of 8.772 Fibonacci extension level. However, the first target will be at the 1.129 extension level.

4-hour Chart Indicators Reading
The pair is above 80% range of the daily stochastic. This indicates that the market is approaching the overbought region. Sellers may emerge in the overbought region. The pair is also in a strong bullish momentum. The SMAs are also sloping upward indicating the upward move.

General Outlook for USD/JPY
The Japanese Yen is likely to resume an upward move. However, it is currently facing resistance at level 108. However, since April,level 108 has not been broken. The market has been trading below the resistance.


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