Buying the Retrace in USD/JPY at MAs
USD/JPY has retraced lower today, but MAs are providing support on the H4 chart
[[USD/JPY]] turned quite bearish in June, declining from below 110 to 106 in the first half of last month. The USD weakened, which reversed this pair down, but then the sentiment improved in financial markets, which helped reverse this pair back up.
Moving averages which were acting as resistance on the way down, turned into support, first the 20 SMA (grey), then the 50 SMA (yellow) took up that job and finally the 100 SMA turned into support. USD/JPY climbed above 108 yesterday, although we are seeing a pullback lower today.
The sentiment has been sort of positive today specially after the US ADP non-farm and ISM manufacturing reports for June, which were quite positive, but the slide has continued. Now, the price has reached moving averages again on the H4 chart, with the 20 SMA and the 100 SMA acting together as support. We decided to open a buy forex signal at 107, so we’re hoping for a bounce from here,, since the pullback is complete as well.
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