Booking Profit in USD/JPY, After Failing at MAs

USD/JPY retraced higher earlier this week, but the retrace ended at the 50 SMA

The pullback ended last night

On Monday, we opened a sell forex signal in USD/JPY , as this pair was retracing higher, after being sort of bearish last week.  This forex pair has been trading sideways since the middle of last month, with the uncertainty being quite high globally.

But, the pressure has been slightly to the downside since then and buyrs were havbing trouble around the 100 SMA (green) on the H4 chart. We decided to open a sell signal there since that moving average had been providing support before for this pair.

But, buyers pushed above the 100 SMA and the price reached the 50 SMA (yellow), which also had been working as support before, while now it turned into resistance. The price formed an upside-down hammer up there, which is a bearish reversing signal and today it reversed back down, hitting our take profit target for our trade. So, that was a good trade, although it took some time to close.

 

ABOUT THE AUTHOR See More
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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