The Retrace Higher is Complete for USD/JPY According to the Weekly Chart - Forex News by Strategia Forex
USD/JPY has turned bearish this week

The Retrace Higher is Complete for USD/JPY According to the Weekly Chart

Posted Friday, October 4, 2019 by
Skerdian Meta • 1 min read

USD/JPY has been bearish the entire year, as the global economy slowed considerably and the sentiment turned negative, helping safe havens such as the JPY. Although, we saw a retrace higher take place for most of September as the sentiment improved over positive comments coming from China and the US.

The USD was also attracting some decent bids, which helped this pair push higher. But, in the last two weeks, the price formed a doji and a hammer which are reversing signals and the buyers couldn’t push higher. That was a sign that the retrace might be over.

Besides that, the 20 SMA (grey) was providing sort of resistance on the weekly chart, while the stochastic indicator was nearly overbought. This week, after the two really weak ISM reports from the US, the Buck has turned bearish and the JPY has turned bullish. So the reversal is underway and this pair has two reasons to fall further now, a technical and a fundamental.

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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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