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

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.