The Bullish Reversal Is Official in USD/JPY, As MAs Turn Into Support
USD/JPY found solid support at the 200 SMA yesterday after the pullback lower
After the big crash in March for USD/JPY , which sent this pair diving around 11 cents lower and the reversal that followed in the following weeks, this pair was trading sideways since April, as the uncertainly remains high. But, in the last week of July we saw another bearish reversal in USD/JPY as the USD tumbled lower.
During July, moving averages were providing resistance on the H4 chart, but the price dived more than 300 pips lower pretty fast, so MAs weren’t able to catch up. Although, in the last day of last month, we saw a strong bounce higher, which took USD/JPY around 150 pips up.
The 100 SMA (green) provided resistance at the top earlier this month and this pair pulled back lower. But, the 50 SMA (yellow) turned into support and pushed USD/JPY above the 100 SMA, which also turned into support eventually. The price moved higher and broke the 200 SMA (grey) as well.
Yesterday we saw a pullback lower, but the 200 SMA held well as support on the H4 chart and the current candlestick looks bullish after the previous hammer candlestick. So, buyers are in charge in this pair as well and I will try to buy USD/JPY on a pullback tithe 200 SMA.
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