Where’s the Next Support for USD/JPY?
Skerdian Meta • 1 min read
Throughout 2017, the USD/JPY has been trading in ranges stretching from 114.50 on top, to 108 on the bottom. The price reached 107.30s early in September, and pretty quickly, the reverse up took place, and the main range remained between the first two levels.
Last week, this pair lost approximately 250 pips as the USD selloff accelerated. The statements from the Bank of Japan (BOJ) regarding ending the bond purchase programme had quite the impact on this pair.
This forex pair is currently heading down, and will definitely get back up eventually- the equation we have to figure out now is: where will the reverse take place?
There are quite a few obstacles on the downside
The 100 simple MA
The first line in the sand comes at 110. Being that this is a big, round level, it definitely has potential. The 50 simple MA (green) stands right there, and is likely to strengthen this level even further.
The 100 Smooth MA
Just below this comes the 100 smooth MA (red). This moving average had provided support throughout last year, with the exeption of the sellers pushing to 107.30. It comes in at roughly 109.50, another important level.
The big support area
If the level mentioned above goes well, the next target is 108. It provided support last year, but was aided by the 100 smooth MA, as previously mentioned. That support area won’t be as strong this time around, but it will surely make sellers rethink their strategies if we slip down.