Yen May Move Higher as Stochastic Fades From 'Overbought' Territory

Looking back at least 12 months shows us that the 200-period simple moving average has followed USD/JPY price action accurately. With the occasional false breakout to make us think twice, the SMA has yet to fail as resistance. At the current moment the pair lies at yet another position of misunderstanding. But the slow stochastic oscillator shows that the pair may be coming off of ‘overbought’ territory. As such, another selling phase could be in the works for USD/JPY.