The 20 SMA Hold the Retreat in USD/JPY, Keeping It Bullish - Forex News by FX Leaders
The bullish trend continues this week in USD/JPY

The 20 SMA Hold the Retreat in USD/JPY, Keeping It Bullish

Posted Tuesday, May 4, 2021 by
Skerdian Meta • 1 min read

USD/JPY was bearish last week, as the USD was declining. But the JPY gained the least against the Buck, suggesting that this pair would be the first one to make a reversal higher once the USD decline stopped.

That was exactly the case, as USD/JPY turned quite bullish this year, gaining more than 8 cents from the bottom, nearly erasing all of last year’s losses. Other currencies declined against the USD earlier this year, but their loses were much smaller than the JPY.

USD/JPY Live Chart

USD/JPY

This also confirms that the JPY is quite weak, among the weakest of the major currencies. The Bank of Japan (BOJ) didn’t help the situation much when they pledged to keep the monetary stimulus programmes running and adding further if the situation required it.

So, USD/JPY climbed close to 111 last month but in the last week we saw a bearish reversal down, as the USD turned weaker again. The 20 SMA turned into resistance during the decline, but last week USD/JPY turned bullish again and now the 20 SMA has turned into support.

Yesterday we saw a dip down to that moving average, but it held once again and now the price has bounced back up. We lost that opportunity to go long on this pair, but will follow it to see if we can get another buying opportunity lower on another pullback down.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

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.
Related Articles
Comments
0 0 vote
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments