The Retrace Is Complete in USD/JPY, But No Reversal Yet
USD/JPY retraced higher yesterday. but MAs are keeping it in check on the H4 chart
At the beginning of June, USD/JPY surged around 300 pips higher, as the USD started to recover after being bearish for a couple of weeks. But, the uncertainty still remains in financial markets, which is keeping the sentiment in check, thus keeping safe havens bid, as Gold keeps making new highs.
USD/JPY fell around 400 pips after the climb in June and it has been trading in a tight range since then, consolidating within, as uncertainty remains elevated. The price moved above moving averages earlier this month, but slipped below them again as the USD weakened.
MAs have turned into resistance now on the H4 chart, as shown on the image above. Earlier this week we opened a sell forex signal at the 100 SMA (green) which closed in profit during the decline, then we opened another sell signal yesterday, as this pair climbed back up. Now the retrace seems complete and the MAs are still providing resistance, which is a good thing for our trade, but the bearish reversal is not coming yet, so let’s just wait for it.
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