USD/JPY Facing the Support and the 100 SMA at 110
USD/JPY lost nearly $10 during the beginning of this year as the market sentiment turned negative over US tariffs. Although it has been trading in a bullish trend since it reversed higher in March, we saw another bearish reversal towards the end of the year as the sentiment turned bearish again ovrr a number of fundamental events, such as the US government shutdown and Brexit.
This pair has lost nearly $4 in December and it closed last week at 110.30. I mentioned the 110 support level which is a big round number on my previous forex update today, but it seems like USD/JPY sellers lost no time in giving this major support level a try today.
They pushed 30 pips lower this morning and we touched this big level just moments ago. The low I can see on my trading platform is 110 exactly, so that was the first attempt from the sellers. The price has bounced several pips from there but the danger is not over yet.
Although,just below 110 we can find the 100 SMA (red) on the weekly USD/JPY chart. This moving average has provided support last year a few times and it turned into support again this year after it was broken to the upside again. The stochastic indicator is oversold now so the retrace lower seems complete. The trend is still bullish which means that this might be a good place to open a long term buy forex signal in this pair.
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