Cryptocurrencies have been trading on a bearish trend in the last week or so. But yesterday in the afternoon, they started reversing and it seems like they have entered the next bullish phase. Forex is pretty quiet today, with most major pairs trading in tight ranges. We got a few pips from the GBP/USD forex signal though.

The USD sellers don’t look so sure today

Cryptocurrencies Turn Bullish Out of the Blue

As you can see from the daily Bitcoin chart at the bottom of this section, this cryptocurrency turned bullish yesterday. It was following a bearish trend for about a week, but we know see that the bearish trend was more of a retrace of the bigger uptrend before the next bullish move.

In fact, he whole crypto market has turned bullish today, as it is often the case with cryptos. Litecoin Mini started the reversal late last week after kissing the 100 SMA on the daily chart. Exactly the same thing happened with Ethereum, but the reversal is slower for this altcoin.

Back to Bitcoin, we see that the reversal started after this altcoin formed a pin candlestick two days ago. The pins and dojis are starting to work pretty well for cryptocurrencies now, as well as moving averages.

The retrace lower started a week ago when Bitcoin touched the 100 SMA (green). It formed an upside down pin which is a bearish reversing signal and in the next 6-7 days this cryptocurrency was in a bearish mode.

Last Sunday, Bitcoin reached the 20 SMA (grey) and it formed a pin, which is a bullish reversal signal. The stochastic indicator was oversold as well, which meant that the retrace lower was complete. The candlesticks of the next two days are pretty bullish, so Bitcoin has entered a bullish phase now. Although, as I mentioned a few days ago, Bitcoin must break the 20 SMA on the weekly chart which comes at $10,700, so the uptrend can pick up pace.

The 20 SMA provided support for Bitcoin last week

The 100 SMA Is Scaring the Buyers in USD/JPY

Yesterday we opened a sell forex signal in USD/JPY. We went short on this pair as it was retracing higher from the bearish move overnight. The 50 SMA (yellow) was providing resistance on the H1 chart and the price formed a doji candlestick.

But the buyers decided to push higher and USD/JPY climbed to 107.10. Although, they gave up at this level after having several attempts, trying to break above it. Two moving averages capped the moves higher, in particular the 100 smooth MA (red).

As you can see from the hourly chart below, the 100 simple MA (green) and the 100 smooth MA have been providing resistance at 107.10 and this level has turned into resistance now.

The 100 smooth MA (red) was providing support last week as this pair moved above 107. Now that it has been broken, it has turned into resistance.

Now the price is overbought on the H1 and H4 charts so the downside might resume soon in this pair. The area around 107.00-10 looks like a good place to go short, so if you are looking to sell USD/JPY, this is the place to do so.

The 100 smooth MA looks like a good place to sell

Trades in Sight

Bearish NZD/USD

1. The trend has been bearish for about two week
2. Every attempt from buyers has been overwhelmed by sellers

The bearish trend is pretty evident here

NZD/USD has turned really bearish now after declining continuously for nearly two weeks. The US Dollar has gone through some rough times a few times during this period, but the Kiwi couldn’t be able to take advantage of it. This leaves the NZD in quite a bearish mode, so we are waiting for a retrace higher in order to sell.

In Conclusion

There’s no real bias today in the forex market, It has been trading in very tight ranges, but it might change soon. Jerome Powell is about to make his first testimony as head of the FED so I think that forex traders are waiting for him. Let’s hear what he has to say.