USD/JPY Down 12 Pips in Last 4 Hours, Came Into Today Down For the 2nd Day In A Row; Breaks Below 50 Day Average

USD/JPY 4 Hour Price Update

Updated July 02, 2020 01:15 AM GMT (09:15 PM EST)

USD/JPY entered the current 4 hour candle at 107.355, down 12 pips (0.11%) from the last 4 hour candle. Out of the 37 instruments in the Forex asset class, USD/JPY ended up ranking 33rd for the four-hour candle in terms of price change.

USD/JPY End of Day Recap

Updated 00:30 GMT (04:30 EST)

USD/JPY is down 4 pips (0.04%) since the day prior (opening today near 107.421), marking the 2nd day in a row a decline has happened. Compared to its peers in the Forex, USD/JPY gave its buyers a return that ranked 34th in terms of percentage change since the day prior. Below is a price chart of USD/JPY.

USD/JPY Technical Analysis

First things first: USD/JPY crossed below its 50 day moving average yesterday. Volatility for USD/JPY has been contracting over the past two weeks relative to volatility over the past month. Whether volatility reverts will be something to watch. The clearest trend exists on the 14 day timeframe, which shows price moving up over that time. Interestingly, a trend in the other direction exists on the 30 day timeframe, where price is headed down. Or to simplify this another way, note that out of the past 14 days USD/JPY’s price has gone up 7 them. Also, candlestick traders! Note we see pin bar pattern appearing here as well.

The View From Around the Web

Of note is that traders in aggregate have opinions on USDJPY, with 18 buy signals on our radar and 9 sell signals. This imputes a buy/sell ratio of 2, which is bullish. As for the rationale, technical traders seem to be citing the appearance of a channel technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

The ascending channel H4 has been broken down today. The probability that the price continue its fall is high.I expect 75 pips on this trade for a risk reward of 1:1.