USD/JPY Still Finding it Difficult to Push Above the 200 SMA

USD/JPY has moved higher today on positive trade comments from China, but the 200 SMA is not letting go

The climb has stopped in USD/JPY

The sentiment has improved today in financial markets after China’s comments, suggesting that the planned meeting with the US will take place. As a result, risk assets have rallied while safe havens have retreated, and hence the climb in USD/JPY during the European session.

But, this pair is still banging its head against the 200 SMA (purple) on the hourly chart. This moving average has been providing solid resistance in the last two weeks many times. It was broken briefly on Friday but Trump’s comments for a 5% increase on tariffs on China reversed this pair and sent it tumbling lower as safe havens suddenly became very attractive after that.

Today, the price pierced the 1200 SMA several times, but the price has retreated back down below it. No candlesticks have closed above it,so there’s no break yet. The stochastic indicator is overbought on the H1 time-frame, so this might be a good chance to go short on this pair. The initial optimism has faded now, so the sentiment should turn negative again soon, which would send this pair lower.

ABOUT THE AUTHOR See More
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

0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

HFM

Doo Prime

XM

Best Forex Brokers