USD/JPY Turns Bearish at 109 Resistance After Forming A Doji Candlestick

USD/JPY formed a doji candlestick yesterday which is a reversing signal and it fell around 100 pips today

Written by: Skerdian Meta • Thursday, October 31, 2019 • 1 min read

• Last updated: Thursday, October 31, 2019

[[USD/JPY]] has turned quite bearish now, after Jerome Powell’s comments on Wednesday evening that the FED is unlikely to hike interest rates again and the sentiment turned negative, especially for the USD. The JPY benefited both ways, as a safe haven currency and this pair turned bearish.

USD/JPY lost more than 130 pips from top to bottom. This pair has formed a resistance at 109, which has reversed the price lower a few times before and it did so again yesterday. The daily candlestick closed as a doji yesterday, which is a reversing signal and the reversal came after that.

USD/JPY formed a big bearish candlestick today which completes the bearish reversal chart setup on the daily time-frame. Stochastic was overbought and is heading down as well. China’s comments earlier today that it will be impossible to reach a full trade deal as long as Trump is in office played an important part as well. Now this pair is headed for the 50 SMA (yellow) and the 100 SMA (green) now, so we will try to sell retraces higher on smaller time-frame charts, such as the H1 or the H4 chart.

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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.