Moving Averages Keep USD/JPY Well Supported

USD/JPY turned pretty bullish last week as sentiment improved and moving averages are pushing it higher

Skerdian Meta•Tuesday, October 15, 2019•1 min read

[[USD/JPY]] turned pretty bearish two weeks ago, after the US ISM manufacturing and non-manufacturing reports came pretty weak. That increased fears that the US economy is heading towards a stagnation, which hurt the sentiment in financial markets, sending safe havens higher and USD/JPY lower.

But, the sentiment improved last week after positive comments regarding US-China negotiations and Brexit. That reversed the situation for USD/JPY and this pair climbed around 200 pips. So, the pressure has been to the upside for this pair since Monday last week.

Although, we saw a pullback lower yesterday after comments from China that they need more time to negotiate with the US,which hurt the sentiment a bit. But, the 50 SMA (yellow) held the decline, turning into support. We decided to buy down there and the price bounced higher.

But, it has been trading sideways in the last couple of sessions, although the 20 SMA (green) and the 50 SMA (yellow) are supporting this pair. So, let’s hope that these moving averages induce another bounce for USD/JPY.

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

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.