USD/JPY Downtrend Continues – Is There An End To This Trend?
The 110 level in USD/JPY has been quite a strong support for the last two weeks. USD/JPY sellers turned around exactly five times at this level during this period, which shows its importance.
Neverthless, the sellers always returned in bigger numbers, since the highs kept getting lower. This meant that sooner or later this level would have to let go. The other bearish signal was the fact that during April we haven´t been able to close above the 100 (red) and 200 (purple) MAs, as you can see on the daily forex chart below.
The last 2 days have been very bearish
On Tuesday this forex pair crossed over the line in the sand and hasn´t looked back since.
The candlesticks of the last two days look pretty bearish as well, so there´s no sign that this pair is bottoming out.
We broke below 1.09 too, so the next target is 1.08. On the weekly chart, we see that the 50 (yellow) and 100 (red) MAs are standing at 1.0830, which is close enough to 1.08 to add additional strength to it.
We´re approaching 2 important MAs
I´m not saying that would be the turning point, this pair turns around only when the market sentiment shifts, but it would be a good place to consider a long term signal/trade, aiming for 150-200 pips.
All charts are already oversold and will be even more so by the time we get there, which might be today with the way things have been recently evolving. I´m preparing for a counter trend trade down there. We´ll post it on the long term signals section, so make sure not to miss that trade.
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