USD/JPY Down 112 Pips; in a Downtrend Over Past 14 Days

USD/JPY Price Recap

The choppiness in the recent daily price action of USD/JPY continues; to start today, it comes in at a price of 104.51 US dollars, down 112 pips (1.06%) since yesterday. The price move occurred on volume — and we’re using the number of tick price changes as a proxy for volume — that was down 27.36% from the day prior, but up 27.86% from the same day the week before. Relative to other instruments in the Forex asset class, USD/JPY ranked 34th yesterday in terms of percentage price change. Below is a price chart of USD/JPY.

USD/JPY Technical Analysis

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 200 day average, which is 376.2 pips away. Trend traders will want to observe that the strongest trend appears on the 14 day horizon; over that time period, price has been moving down. For additional context, note that price has gone down 16 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 29 buy signals on our radar and 14 sell signals. This imputes a buy/sell ratio of 2.07, which is bullish. As for the rationale, technical traders seem to be citing the appearance of fibonacci and pennant technical patterns. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Daily timeframe:Partially altered from previous analysis -Monday’s near-300-point decline dipped through a number of key technical supports and landed within demand fixed from 100.68/101.85 (an area glued to the top edge of monthly demand underscored above at 96.41/100.81)….Recent technical developments saw Tuesday chalk up a sizable counterattack, reclaiming all of Monday’s losses and retesting demand-turned supply at 105.57/106.17, along with joining 38.2% Fib retracement at 105.39….point at 106.63, a 78.6% Fib retracement at 106.34 and another 127.2% Fib ext.