USD/JPY Flirting With the 50 SMA, As Safe Havens Decline - Forex News by FX Leaders
Buyers are back in USD/JPY

USD/JPY Flirting With the 50 SMA, As Safe Havens Decline

Posted Wednesday, September 23, 2020 by
Skerdian Meta • 1 min read

Safe havens have been in great demand this year, due to the uncertainty and the economic meltdown form the coronavirus. Gold surged to $2,075 while USD/JPY fell to 104 on Monday, despite a strong jump in the USD that day, which shows that the demand for the JPY has been quite high recently.

But, the decline stopped on Monday afternoon, after Jerome Powell’s comments that the US economic recovery is keeping up the pace. Gold crashed $80 lower that day, while USD/JPY made a reversal higher, having climbed more than 100 pips until now.

The 20 SMA (grey) was broken that day on the H4 time-frame chart and that moving average turned into support right away. Yesterday USD/JPY jumped higher again, bouncing off the 20 SMA. Today buyers are trying the 50 SMA (yellow) which rejeced the price in the first attempts, but buyers came back and now they are pushing the price above it again.

So, safe havens are retreating now, that’s the reason we opened a sell signal in Gold a while ago. If the 50 SMA gets broken here, then we will try to buy pullbacks from above at this moving average, which will likely turn into support now.

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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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