USD/JPY Trades in the Oversold Region at 107.138, Buyers Are Likely to Emerge

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 is currently in a sideways move. The market is ranging between the levels of 106 and 110. Recently, the pair traded to the high of 112.228. At the recent high of 112.228, the market reached the overbought region. This attracted selling pressure and the market made a sharp drop. Price dropped to a low of 101.180. The Yen moved up to the range-bound zone to trade at 107.144 at the time of writing.

Daily Chart Indicators Reading:
The 50-day SMA and 21-day SMA are sloping horizontally indicating a sideways move. The market is currently at level 43 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: Bearish
On the 4-hour chart, the pair was earlier in a bull market but was resisted at 111 resistance zone. The market fell to a sideways move. The Yen is currently in the oversold region at 107.138 price level. That is buyers may soon emerge.

4-hour Chart Indicators Reading
The market is currently below 20% range of the daily stochastic. The implication is that it is in the oversold region of the market. It is showing a bullish signal. The SMAs are also sloping in a sideways move.

General Outlook for USD/JPY
The pair is not in a trending market but in a sideways trend. The market is currently in an oversold region. We are awaiting the emergence of buyers in the oversold region. This will propel price to move up.

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