In trading on Thursday, shares of the Japanese Yen Trust ETF (FXY) entered into oversold territory, changing hands as low as $109.64 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.

In the case of Japanese Yen Trust, the RSI reading has hit 27.0 — by comparison, the RSI reading for the S&P 500 is currently 68.5.

A bullish investor could look at FXY's 27.0 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.

Looking at a chart of one year performance (below), FXY's low point in its 52 week range is $109.58 per share, with $129.36 as the 52 week high point — that compares with a last trade of $109.77. Japanese Yen Trust shares are currently trading off about 1.1% on the day.