Going Short on USD/JPY Since the Retrace is Complete
USD/JPY has been etracing higher in the last few sessions but the retrace seems complete now
We just opened a sell signal in USD/JPY, so let’s see what the chart setup behind this trade looks like. For starters, the main trend is bearish since this pair turned bearish at the beginning of this month. The fundamentals are also bearish as the trade war between US and China keeps escalating, which strengthens safe havens such as the JPY.
The technical analysis also points down. The retrace higher is complete as the stochastic indicator is overbought now on the H4 chart. The moving averages are also providing resistance on this time-frame with the 50 SMA (yellow) and the 100 SMA (green) standing at the top of the current H4 candlestick.
So, everything is pointing down for this pair and the sentiment remains negative in financial markets, so we went short on this pair, and are now waiting for a reversal.
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