I was watching the forex charts last night after the Tokyo session started and it looked like it was going to be a decent day regarding volatility. Yen pairs in particular covered enough length during the first few hours, but that was most of the action so far.
USD/JPY opened with a gap and moved higher to conclude 100 pips journey from Fridays close. It has retraced to the 200 smooth moving average (200 SMA) on the hourly forex chart during the morning, but it hasn´t closed the gap.
The 200 SMA kept the sellers from pushing this forex pair lower, so the gap remains open. Supposedly, according to forex textbooks, gaps must close sooner or later, although this is not one of my preferred trading strategies, so I'm not trading it.
For those who do, the gap closes at 113.15, according to my broker platform. However, with the way things have been going this morning and with nothing on the economic calendar, I don´t expect any decent moves, unless Donald comes to our rescue.
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