USD/JPY Reversed Lower, After Failing to Break the 20 SMA Yesterday - Forex News by FX Leaders

USD/JPY Reversed Lower, After Failing to Break the 20 SMA Yesterday

Posted Friday, March 6, 2020 by
Skerdian Meta • 1 min read

USD/JPY turned bearish in the last week of February, as coronavirus spread outside of China and got out of control in Italy. The sentiment turned negative and safe havens such as the JPY rallied higher, which sent USD/JPY around 550 pips lower since then.

On Wednesday, we saw a pullback for this pair, as the sentiment improved a little,, for no particular reason. But, the pullback ended right at the 20 SMA (grey) on the H4 time-frame chart. This shows that the selling pressure is strong, since smaller moving averages are acting as resistance now.

Apart from many major central banks panicking and cutting interest rates in recent days, governments such as in Japan and Italy are also thinking of adding a stimulus package, which has increased fears that the global economy might fall into recession. So, USD/JPY is pretty bearish and it will remain so, as long as coronavirus stays.

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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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