USD/JPY has suffered the most since Trump won the US elections. The market sentiment has improved immensely and we know that the safe haven currencies become the weakest link when risk appetite picks up.
That´s what has happened to the Yen during the past 6-7 weeks, if you´re wondering why this forex pair has gained about 18 cents since early November. We missed the opportunity to open a long term buy forex signal around the 100 support level because the move was so quick and we have been looking for another trade setup to get in.
The 140 pip decline in the last several trading session is presenting us with such an opportunity. It seemed a bit strange that USD/JPY was losing ground yesterday when the Buck was beating the crap out of all other major currencies.
Perhaps it was some sort of run for safety just before yearend or maybe it was just position adjustment. Whatever the reason, this is probably the biggest retrace in more than a month, so I bet USD/JPY buyers are itching to pull the trigger.
1 buy signal.
As you can see from the H4 forex chart above, the price touched the 100 MA (moving average) and it looks like it is turning around now. The stochastic and RSI indicators are well oversold, so that´s clearly a buy signal.
On the daily USD/JPY chart, we can see that the 20 MA in grey is providing support to this forex pair and the stochastic indicator is close to the oversold area. That´s another buy signal, but somehow I feel that this retrace is not over.
2 buy signals.
Personally, I´m looking at the 115 level as an entry point. The weekly chart also points at this level, but we´ll take a better look at this timeframe chart on the weekly review. Anyway, that´s another trade idea guys if you´re willing to get long here.
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