USD/JPY made a 50 pip dive last week. The decline accelerated after the miss in the US employment figures reaching 10630s yesterday morning at the Asian opening. But the decline stopped there and since The Asian opening yesterday the price has steadily moved up to 108.90, where it met the 20 moving average (MA) in the H4 (4 hour) chart. It stopped there and has retraced down during most of the day today. 

In the hourly chart, the price touched the 50 MA in yellow a couple of hours ago, as you can see from the chart above. It has had a few attempts to break below this MA but it hasn't been able to do so. Because of this, we opened a short term buy forex signal in this pair right above the MA. There are some very effective strategies based on moving averages and we have a few of them on our forex strategies page. One of them is combining moving averages with stochastic. In this case, the stochastic is oversold, so this is another indicator that the retrace is over.