An Attempt to Buy USD/JPY at the 100 SMA Yesterday - Forex News by FX Leaders
USD/JPY seems to be turning bearish now

An Attempt to Buy USD/JPY at the 100 SMA Yesterday

Posted Friday, March 27, 2020 by
Skerdian Meta • 1 min read

USD/JPY has had such a roller-coaster in the last month or so. It was trading above 12 by February 20, but made a U-turn, which was followed by a massive 11 cents’ decline, as coronavirus broke out in Europe and countries started shutting down, which sent safe havens higher.

But, in the second week of this month, we saw a reversal and a brutal surge, which took the price almost to February highs. That looked strange, since coronavirus spread further and safe havens like the JPY should have gained even more. But, the market turned to the USD as a global reserve currency for liquidity.

Moving averages have been providing support during pullbacks and pushing the price higher. But in the last two days we have seen a deeper pullback lower, as the USD retreats. The price fell to 109.40s where the 100 SMA (green) provided support. We decided to go long above there, but that moving average was broken. Now, the pressure has turned to the downside, after the US Senate passed the $2 trillion bill.

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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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