USD/JPY Down 5 Pips, Price Base in Formation Over Past 30 Days; Nears 20 and 50 Day Moving Averages

USD/JPY Price Recap

USD/JPY is down 5 pips (0.05%) since yesterday (with its current price near 109.763), marking the 2nd day in a row a decrease has occurred. This move happened on fewer tick price changes which may be a proxy for volume, as yesterday’s total tick count was down 29.27% from the day before — and down 33.05% from the same day the week before. Out of the 40 instruments in the Forex asset class, USD/JPY ended up ranking 22nd 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

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. Related to the moving average crossover is that USD/JPY’s momentum/trend on a 14 day basis may be decelerating. Trend traders will want to observe that the strongest trend appears on the 90 day horizon; over that time period, price has been moving up. Also of note is that on a 30 day basis price appears to be forming a base — which could the stage for it being a support/resistance level going forward. For additional context, note that price has gone up 7 out of the past 10 days.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on USDJPY, with 12 buy signals on our radar and 21 sell signals. This imputes a buy/sell ratio of 0.57, which is bearish. As for the rationale, technical traders seem to be citing the appearance of a trendline technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

4H CHART EXPLANATION:As we can observe, this pair is on a clear uptrend….Price is consolidating right now, so, if this consolidation is broken down, then the move will be confirmed….DAILY CHART ANALYSIS:https://www.tradingview.com/x/zcsCdyaB/