USD/JPY 3 Day Up Streak Snapped, is Inching Close to 20 and 50 Day Averages; Pin Bar Pattern Appearing on Chart

USD/JPY Price Recap

USD/JPY, currently priced near 109.872, is down 1 pips 0.01% since yesterday, marking a reversal from the day prior — and the end of a 3 day positive run. The price move occurred on volume — and we’re using the number of tick price changes as a proxy for volume — that was up 82.43% from the day prior, but down 22.57% from the same day the week before. Relative to other instruments in the Forex asset class, USD/JPY ranked 20th yesterday in terms of percentage price change. The price chart of USD/JPY below illustrates.

USD/JPY Technical Analysis

Notably, 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. Volatility for USD/JPY has exploded over the past two weeks relative to the past 30 days, which technical traders will want to note. The clearest trend exists on the 90 day timeframe, which shows price moving up over that time. Or to simplify this another way, note that out of the past 14 days USD/JPY’s price has gone up 8 them. Oh, and one last thing: if you trade off of candlesticks, note that we’re seeing pin bar pattern appearing here.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on USDJPY, with 4 buy signals on our radar and 28 sell signals. This imputes a buy/sell ratio of 0.14, which is quite bearish. As for the rationale, technical traders seem to be citing the appearance of a relative strength index technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Price reached support and resistance zone and rejected it nicely.We also have a huge bearish rsi divergence.Risk reward ratio is great ( risk 1 get 3 )