The USDJPY currency pair has entered an oversold zone after hitting the lower boundary of the Bollinger Bands, suggesting a possible rebound in the near future. Price movements approaching this support area are often an indication that selling pressure may be waning, and buyers are preparing to take control.
Moreover, the Stochastic indicator is also positioned in the oversold region, indicating that this currency pair has been subject to excessive selling and is likely to experience a reversal. Should the price maintain its position above crucial support levels, USDJPY has the potential to rise, testing nearby resistance levels.
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USDJPY may continue to strengthen after successfully staying above the bullish trendline, suggesting that the upward trend remains intact. Additionally, the Commodity Channel Index (CCI) bouncing back from the oversold zone further reinforces this upward potential. The CCI rebound indicates that bearish momentum is beginning to diminish, creating opportunities for buyers to regain dominance in the market. With this confirmation, USDJPY is poised to test the resistance level of 149.035.
Technical Reference: Buy while above 147.850
Potential Take Profit Level 1: 148.890
Potential Take Profit Level 2: 149.035
Potential Stop Loss Level 1: 148.030
Potential Stop Loss Level 2: 147.850
