Booking Profit in USD/JPY, As MAs Keep Pushing This Pair Down

The USD has been bearish since early this year, while safe haven currencies, like the CHF and the JPY, have been bullish, due to the uncertainty around the globe. As a result, the USD/JPY has been declining since the end of March, and it doesn’t seem like the downtrend will be stopping any time soon.

Moving averages are doing a great job pushing this pair down and keeping the pressure to the downside. The 100 SMA (green) was providing resistance on the daily chart earlier this year, while the 50 SMA (yellow) has taken over in the last few months.

MAs are keeping the trend bearish on the daily chart for the USD/JPY

The 20 SMA (gray) came into play this month, as the USD/JPY was retracing higher once again. This moving average acted as resistance on the daily time-frame, stopping the pullback and reversing the price down again. We had a sell signal here, which we opened last week. Now this signal has closed after sellers pushed the USD/JPY down, triggering the take profit target. So, we will keep selling the retraces higher in this pair if another opportunity arises.

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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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