USD/JPY Tempting Again For Shorts
Skerdian Meta • 1 min read
At the moment, USD/JPY is holding at 111.20-30 which is a very interesting level. Yesterday we opened a sell forex signal around here, which went pretty well seeding as it hit take profit overnight.
Like USD/CAD, this forex pair has been trending lower. Howeverm USDJPY only began its downtrend in the last two weeks, while USD/CAD started its downtrend in May.
However, the downtrend in USD/JPY has been just as strong and now we´re seeing the buyers put up a fight.
We did pocket the pips from our USD/JPY signal overnight, but we can also see that the seller couldn´t make a new low. They had their go during the Asian session but gave up 20 pips short of yesterday´s low.
That´s a bit worrying for sellers because we must break the previous lows for a downtrend to continue further down. Nevertheless, the trend is still intact and there’s plenty of time until the day ends. So, we might see USD/JPY bears have another go and make a new low before the day closes.
The resistance level seems to be working at the moment
As you can see from the forex chart above, the price is holding near resistance and judging from the price action, I think that it is having trouble climbing higher.
I would sell this pair right now, but the technical indicators at the bottom of the chart are still headed up.
Update: we just sold USD/JPY while posting this market update, so let´s hope the resistance level works this time.