(Last Updated July 7, 2020)
Hello! This is the news page for USDJPY. Below you’ll find our daily market updates. Here’s a technical analysis summary of where things currently stand:
A trend/countertrend situation exists on USDJPY, in which an uptrend exists on shorter timeframes but a downtrend appears on the 30 day timeframe. As such, traders with short positions should be aware of the downtrend in place on the longer timeframes.
USDJPY’s moving averages tell a multi-facted story about its trend. The 50 and 100 day averages are pointing upwards, suggesting a bullish trend, while the 20 and 200 day averages are pointing downward, suggesting a bearish trend on those timeframes.
The chart below illustrates.
Regarding USDJPY’s correlations over the past 7 days, it has demonstrated the strongest correlation with GBPUSD. If we zoom out to a two week basis, though, the asset showing the strongest correlation to USDJPY is TRYJPY. Alternatively, the asset least correlated with USDJPY over the past week has been GBPAUD, but over the past two weeks, AUDUSD has been the asset least correlated with USDJPY. See the chart below to observe the recent price action in USDJPY versus those of assets it hasn’t been well correlated with.
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Consequently, the minor trend turns bearish upon the occurrence of this bearish pattern, and frequent failure swings at the stiff resistance zone of 109.400-109.800 levels, the current price slides below dmas.
For additional context, note that price has gone up 5 out of the past 10 days.
Buying in the area of 1,1090 with a stop below 1,1050 and a profit in the area of 1,1180….
This imputes a buy/sell ratio of 2.33, which is bullish.
This imputes a buy/sell ratio of 0.69, which is bearish.
This imputes a buy/sell ratio of 0.69, which is bearish.
As for the rationale, technical traders seem to be citing the appearance of a stochastic technical pattern.
As for the alignment of the moving averages, well, it’s a bit mixed up; the 20, 50, 100, and 200 do not progress from largest to smallest, or vice versa.
This imputes a buy/sell ratio of 0.94, which is neutral.
The clearest trend exists on the 30 day timeframe, which shows price moving up over that time.