USD/JPY 3 Day Down Streak Snapped; Eyes 20 Day Average

USD/JPY Price Recap

After 3 down days, USD/JPY snaps its streak, rising 23 pips (0.21%) over the past day to close at an exchange rate of 110.421. The price move occurred on stronger volume, as measured by the number of tick price changes; specifically, yesterday’s volume was up 12.04% from the day prior, and up 439.58% from the same day the week before. Out of the 40 instruments in the Forex asset class, USD/JPY ended up ranking 14th for the day in terms of day-over-day price change. Here is a 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, 50, 100 and 200 day moving averages; moving average crosses often indicate a change in momentum, so this may be worth keeping an eye on. Trend traders will want to observe that the strongest trend appears on the 30 day horizon; over that time period, price has been moving up. For additional context, note that price has gone down 16 out of the past 30 days.

A final note on correlations: over the past week, USD/JPY has been most correlated with USD/CNH — a frequent scenario, considering USD finds itself in both pairs. As for pairs with the least correlation, look no further than AUD/USD if you’re focused on just this past week, or EUR/GBP for a look at a broader, two week window.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on USDJPY, with 16 buy signals on our radar and 18 sell signals. This imputes a buy/sell ratio of 0.89, which is neutral. As for the rationale, technical traders seem to be citing the appearance of a channel technical pattern. Here’s a piece we found on; below is a short snippet from it to give you a taste.

After such a long wait USDJPY finally broke the monthly symmetrical triangle to the upside. The move retracement may break back inside the triangle, but I will be on the lookout for bullish candlesticks