Taking Aim at USD/JPY - Forex News by FX Leaders

Taking Aim at USD/JPY

Posted Tuesday, February 7, 2017 by
Skerdian Meta • 1 min read

Our AUD/USD signal didn´t go well overnight. It was in profit at a certain time after the RBA statement, but the USD bulls got a dose of steroids early this morning. I don´t know where it came from but it took the Buck 100 pips higher in a few hours.

But, this latest USD surge also opened up the door for some other forex trades. One of them appeared in USD/JPY a while ago and we thought that this is a good opportunity, so we pulled the trigger on that one and the USD/JPY signal is now live.

Let´s hope the 50 moving average in yellow is a good gate keeper

The reasons for this forex signal are quite a few.

1. The trend is clearly down and it´s pretty strong

2. The retrace/pullback higher this morning seems sort of stretched. Both stochastic and RSI indicators are oversold as you can easily distinguish on the H1 UD/JPY chart

3. The 50 SMA in yellow is providing some solid resistance at 112.40

4. The 112.40-50 area was a really strong support level on the way down, so it´s likely that it will turn into strong resistance now

So, these were the reasons and indicators that we opened this forex signal at 112.29. The price moved about 10-15 pips higher afterwards, but has now pulled back down a bit.

It looks technically good at the moment and the US economic data is pretty light today. So, let´s hope the techs do their job and we reach the take profit target soon.

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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