Dollar reverses losses

USDJPY Technical Analysis 21 October, 2021

• USDJPY reversed from resistance area
• Likely to fall to support level 113.00

USDJPY currency pair continues to fall after the pair reversed down from the major resistance area located between the long-term resistance level 114.50 (which stopped the previous sharp uptrend at the end of 2018 as can be seen from the weekly USDJPY chart below) and the upper daily Bollinger Band. The downward reversal from this resistance zone stopped the previous intermediate impulse wave (3).

Given the strongly of the aforementioned resistance area and the overbought weekly Stochastic, USDJPY currency pair can be expected to fall further toward the next support level 113.00.

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