USD/JPY 2 Day Up Streak Ended; in a Downtrend Over Past 30 Days

USD/JPY Price Recap

USD/JPY enters today at 105.855 in US dollars, down 210 pips (1.94%) from the day prior. The price move occurred on volume — and we’re using the number of tick price changes as a proxy for volume — that was down 8.17% from the day prior, but up 191.3% from the same day the week before. Out of the 40 instruments in the Forex asset class, USD/JPY ended up ranking 34th for the day in terms of day-over-day price change. Let’s take a look at price chart of USD/JPY.

USD/JPY Technical Analysis

The first thing we should note is that the current price of USD/JPY is sitting close to its 20 and 200 day moving averages; moving average crosses often indicate a change in momentum, so this may be worth keeping an eye on. 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. The closest is the 20 day average, which is 210.1 pips away. The clearest trend exists on the 30 day timeframe, which shows price moving down over that time. For additional context, note that price has gone up 15 out of the past 30 days.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on USDJPY, with 10 buy signals on our radar and 4 sell signals. This imputes a buy/sell ratio of 2.5, which is bullish. As for the rationale, technical traders seem to be citing the appearance of channel and fibonacci technical patterns. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Looking at this pair on the 240 I see that an ascending triangle is forming. I’ll wait until it reach the white line before I put a sell on it.