USD/JPY Faces the 200 SMA As It Turns Bearish Again Today on Negative Risk Sentiment - Forex News by FX Leaders
The 200 SMA is the decisive indicator whether USD/JPY stays bullish or turns bearish

USD/JPY Faces the 200 SMA As It Turns Bearish Again Today on Negative Risk Sentiment

Posted Wednesday, May 22, 2019 by
Skerdian Meta • 1 min read

USD/JPY turned bearish more than two weeks ago when it opened with a gap lower after the trade talks between US and China came to a halt after the new tariffs from both sides. The safe havens such as the JPY attract strong bids on such occasions and as a result this pair lost more than 250 pips during that week.

Last week we saw a retrace higher though, despite a deteriorating sentiment and USD/JPY pushed higher, breaking moving averages one after another. But, this pair ran into moving averages on higher time-frame charts such as the daily and the weekly charts where it found resistance.

So today, we are seeing a reversal back down. The trade war is escalating further with China and the US threatening each-other which is hurting the sentiment and increasing the demand for the JPY as a safe haven. But now, this pair is facing the 200 SMA (purple) which has been providing support all day today.

The moving averages, provided resistance on the way up and turned into support when the price retraced lower so the 200 SMA is doing the same now. This will be a sign of the trend in the coming days; if the 200 SMA breaks, then the other MAs should break as well, if it hold, then we will likely see the same price action of the last two weeks.

 

 

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

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.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of