Buying USD/JPY at 50 SMA - Forex News by FX Leaders

Buying USD/JPY at 50 SMA

Posted Thursday, March 1, 2018 by
Skerdian Meta • 1 min read

Here is another live forex signal from today – we went long on the USD/JPY as this pair retraced lower and reached the 100 SMA on the H1 chart. We based our trade however on the H4 chart, so let’s see how this timeframe chart looks.

The USD/JPY is not making new lows it is actually making higher lows, which is a sign that the downtrend has come to an end.

Besides for that, the stochastic indicator, a great indicator for showing the end of a retrace, is almost oversold on the H4 chart. In this case, the retrace is almost over since stochastic is nearly oversold.

50 SMA stopping sellers at 107

The strongest indicator is the 50 SMA (yellow). This moving average acted as support back in January and now acting as a resistance. We thought going long with this moving average would be a safe trade as it’s been containing sellers all day today.

The previous H4 candlestick formed a Doji, working more or less like the stochastic. It indicates when a forex pair is about to reverse, which the USD/JPY looks like it will do. We took that trade based on this chart setup. Let’s give it time.

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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