USD/JPY Trades in a Sideways Trend, Amidst Sleepy Market

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
The USD/JPY pair was earlier in a bullish trend. The bullish trend was terminated when the market reached the overbought region of 112.228. The market fell to a low of $104.992. Incidentally, price fell to the oversold region of the market. In April, the pair was fluctuating between the levels of 107 and 109. The market is now in a sideways move. A break below 107 will mean a downward movement of the pair. The market will move up if it breaks above the support line of the ascending channel.

Daily Chart Indicators Reading:
In April, the EMAs are sloping horizontally indicating a sideways move. The Yen is currently at level 47 of the daily Relative Strength Index. This indicates that the market is in the downtrend zone and below the centerline 50.

USD/JPY Medium-term Trend: Ranging
On the 4-hour chart, the pair is in a sideways trend between 107 and 109. The market has been fluctuating since March 29. The bulls tested the upper range price on April 6, and it dropped to the lower price range after three days of resistance. The market is consolidating after testing the lower price range. Traders can initiate a buy order as the market moves up from the lower price range.

4-hour Chart Indicators Reading
The pair is currently above 25% range of the daily stochastic. The Yen is presently in a bullish trend. From the price action, the support is holding as price makes an upward move. The 50-day SMA and 21-day SMA are sloping horizontally indicating the sideways trend.

General Outlook for USD/JPY
The USD/JPY pair is in a sideways move. The price is fluctuating between levels 107 and 109. Range bound traders can trade the range-bound movement as the sideways trend continues. The sideways trend is terminated if price breaks the upper or lower price range.

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