What’s Going On With USD/JPY?
Skerdian Meta • 1 min read
USD/JPY has been feeling heavy since the beginning of the year and it got heavier when Trump set foot in office in mid-January.
The support levels have been moving down as they keep being broken one after the other from the reverse top at around 118.60 in early January. The 112.50-60 level provided strong resistance on the way down for a couple of weeks last month, but it had to let go at some point.
Then, the 111.50 level turned support. It held well two weeks ago after a couple of attempts from the USD/JPY sellers to break that level too, but it didn´t happen.
Wait for a retest of the 112.50 support level before embarking on a long signal.
Now, the price has moved back above 112.50 and this level has come back into play once gain. Looking at the H4 chart above, we see that the stochastic indicator is overbought and the 100 SMA in red is providing resistance, so we might as well see another pullback to the 112.50 level today.
That would be a good spot for a long term buy forex signal here. Again, we´ll check the price action and keep an eye/ear on Trump, but the weekly chart is sort of pointing up too. So let´s be patient and wait for the price come to our levels instead of chasing it around.