The 100 SMA Has Turned Into Support for USD/JPY Again - Forex News by FX Leaders
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The 100 SMA Has Turned Into Support for USD/JPY Again

Posted Friday, October 18, 2019 by
Skerdian Meta • 1 min read

Yesterday we decided to go long on USD/JPY . This pair had been on a bullish trend for the last two weeks due to the improvement in the market sentiment, after positive comments regarding the US-China trade deal and Brexit. So, safe havens have been retreating and USD/JPY advancing.

But it retreated lower after comments from the DUP Party of Northern Ireland that they were not on board with the Brexit deal that Boris Johnson and the EU had reached. The price feel to the 50 SMA (yellow) on the H1 chart, which had been providing support in the recent days.

But, other fractions of UK politics joined the DUP in refusing the deal and the situation deteriorated a bit, hurting the risk sentiment for a while and sending USD/JPY lower. But, the decline stopped at the 100 SMA (green) on the H1 chart where we decided to go long on this pair.

This moving average provided support at the beginning of October when the trend turned bullish, but then the smaller period MAs such as the 20 SMA (grey) and the 50 SMA (yellow) took its place as the trend gained pace.

The price formed a doji at that moving average and then moved higher. It retreated down this morning but it has bounced off again. So, the 100 SMA is doing a good job as support and it is protecting our trade here. We are holding on to our trade, hoping that buyers push higher.

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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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