Selling USD/JPY After the Retrace Higher, As BOJ Offers Nothing New
We decided to sell USD/JPY as it is reversing lower, after a retrace higher earlier today
USD/JPY was showing extreme bullish momentum, as the JPY was crashing lower, until Japanese authorities intervened and sent this pair crashing more than 5 cents lower once again, after doing that same scenario in September.
Although, back then the bullish momentum picked up again for USD/JPY not too long after the crash lower. This time it has been a week since the intervention and the crash and the bullish momentum hasn’t picked up yet, as this pair remains around 4.5 cents below the high at 152 before the crash.
Although, the Bank of Japan announced that they would intervene in smaller amounts in frequent periods. USD/JPY continued lower this week, as a result, also helped by the weakness in the USD, so the pressure remains on the downside at the moment.
USD/JPY H1 Chart – Will the 200 SMA Hold as Resistance?
The retrace higher is complete
Although, buyers gave it a try earlier today, as they pushed the price above the 50 SMA (yellow) which was acting as resistance on the H1 chart since the intervention. Although, the 100 SMA (green) seems to have turned into resistance at the top now. We decided to take a shot opening a sell USD/JPY signal below the 100 SMA and now the price is reversing lower after piercing that moving average briefly.
USD/JPY Live Chart
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