USD/JPY Turns Bearish After Failing to Break the 100 SMA - Forex News by FX Leaders
USD/JPY is resuming the bearish trend now

USD/JPY Turns Bearish After Failing to Break the 100 SMA

Posted Wednesday, May 15, 2019 by
Skerdian Meta • 1 min read

Yesterday I posted an update about USD/JPY. This pair turned bearish the previous week after opening with a bearish gap that weekend. The bearish momentum continued throughout last week as sentiment deteriorated further on trade war escalation between US and China. On Monday we saw another bearish gap and a continuation lower to 109.

But the price retraced higher yesterday during the Asian session, breaking above the 20 SMA (grey) and the 50 SMA (yellow). Although, the buyers found solid resistance at the 100 SMA (green) which did the same on Friday evening, before this pair opened with another bearish gap this week.

This moving average provided resistance all day yesterday and today as well, despite being pierced briefly. In the last two hours though, the sellers have become active and they have reversed the price down after forming a small doji candlestick.

Now the sellers have given up after failing to break the 100 SMA and it seems that USD/JPY is resuming the bearish trend again. After all, the sentiment is pretty negative and things are expected to get worse. We opened a sell signal below the 100 SMA yesterday which is pretty close to hitting the profit target now.

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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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The image is of the DE30 chart, not the USD/JPY chart.