USD/JPY Down 9 Pips Over Past Hour, Entered Today Down For the 2nd Consecutive Day; is Inching Close to 200 Day Average

Hourly Update

(Last Updated September 22, 2021 1:46 GMT)

Currently, USDJPY’s rate is down -900 pips (-0.08%) from the hour prior. This is a reversal of the price action on the previous hour, in which price moved up. If you’re a trend trader, consider that the strongest clear trend on the hourly chart exists on the 20 hour timeframe. Price action traders may also wish to note that we see a doji candlestick pattern on USDJPY. Given that we see downtrend on the 20 hourly candle timeframe, and that such candlestick patterns often denote reversals, this may be worth noting. The moving averages on the hourly timeframe suggest a choppiness in price, as the are all in a mixed alignment — meaning the trend across timeframes is inconsistent, indicating a potential opportunity for rangebound traders.

USDJPY End of Day Recap

Updated 00:30 GMT (04:30 EST)

USDJPY is down 23 pips (0.21%) since the day prior (opening today near 109.151), marking the 2nd consecutive day a decrease has occurred. Out of the 39 instruments in the Forex asset class, USDJPY ended up ranking 20th for the day in terms of price change. The price chart of USDJPY below illustrates.

USDJPY

USDJPY Technical Analysis

The first thing we should note is that USDJPY is now close to its 20, 50, 100 and 200 day averages, located at 109.8274, 109.8291, 110.0169 and 109.039 respectively, and thus may be at a key juncture along those timeframes. 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 11.2 pips away. It should be noted, though, the 100 day simple moving average turned downwards, which may be a bearish sign. For additional context, note that price has gone down 5 out of the past 10 days.