Closing USD/JPY as it Reverses Down from the 50 SMA Again this Week
USD/JPY has found solid resistance at the 50 SMA once again
The USD/JPY has been bearish most of this year, but the bearish trend has picked up pace since early November, as the USD turned massively bearish after the US elections. The new coronavirus restrictions are hurting the global economy once again, and the JPY has been benefiting from it.
However, yesterday we saw a bounce off the 20 SMA (gray) on the H4 chart, sending this pair 50 pips higher. But this month, the jump stopped at the 50 SMA (yellow) for the second time, which has provided resistance before. We decided to open a sell forex signal below that moving average yesterday, after it formed a spinning top candlestick.
The 20 SMA is acting as support at the bottom
Today, the USD/JPY has turned bearish again, due to comments by Donald Trump, who wasn’t too pleased with the coronavirus relief package. Now the price is trading above the 20 SMA, where it is finding support again on the H4 chart. We are thinking of closing this signal, since the 20 SMA is acting as support as we head towards the Christmas break.
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