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USD/JPY remains bullish this week

Buying USD/JPY at the 50 SMA as This MA Keeps Pushing It Higher

Posted Thursday, October 17, 2019 by
Skerdian Meta • 1 min read

USD/JPY has turned quite bullish in the last two weeks. This pair was quite bearish in the first week of this month, as sentiment deteriorated in the financial markets after the really soft US ISM manufacturing and non manufacturing report that week which got investors worried that the US economy might be heading towards a stagnation like in the Eurozone.

But, the sentiment turned positive last week as rumours and comments pointed towards a deal between US and China, as well as between UK and the EU. As a result, safe havens turned bearish, thus reversing the trend in USD/JPY. That sentiment has spilled into this week and the upside momentum has continued.

During the last two weeks when the trend has been bullish, moving averages have been providing support and pushing the price higher. The 20 SMA (grey) has helped at times, but it has been the 50 SMA (yellow) which has been the ultimate support indicator.

The price has bounced off of it several times and we decided to open a buy forex signal just a while ago as this pair retraced lower on comments from the DUP party on Northern Ireland and the UK opposition leader that the Brexit deal that Boris Johnson has reached with the EU is not acceptable. The 50 SMA is providing support again now, so we are long on this pair.

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