USD/JPY Consolidates Below Level 108, Breakout Likely

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

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USD/JPY Price Long-term Trend: Ranging
The pair is currently in a sideways move between the levels of 110 and 108. The Yen was in an uptrend but it is facing resistance at level 108. The pair is on a downward move as a result of the resistance at level 108. The Yen may reach a low of level 106 if the selling pressure continues.


USD/JPY – Daily Chart

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 51 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 is trading in a bear market. Recently, the Yen moved up but was resisted twice at level 108. On May 14, A bullish candle body tested the 0.382 Fibonacci Retracement level. As the bullish candlestick tested the 0.382 retracements, the Yen will fall and reverse at 1.618 extension level. This is equivalent to level 106.


USD/JPY – 4 Hour Chart

4-hour Chart Indicators Reading
The pair is below 80% range of the daily stochastic. This implies that the market is in a bearish market. This is a confirmation to the price action which is indicating bearish signals. The SMAs are also sloping upward indicating the upward move.

General Outlook for USD/JPY
The Japanese Yen is currently in a downward  move after falling from level 108. The market will fall to level 106.800 but if the selling pressure persists, the pair will reach the low of 106. Alternatively, the price will consolidates below level 108 for a breakout.

 

Source: https://learn2.trade

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