USD/JPY Makes Big Move Relative to Past Three Months; Up 149 Pips

USD/JPY Price Recap

USD/JPY enters today at 111.359 in US dollars, up 149 pips (1.35%) from the day prior. The price move occurred on volume — and we’re using the number of tick price changes as a proxy for volume — that was up 4.57% from the day prior, but down 9.15% from the same day the week before. Relative to other instruments in the Forex asset class, USD/JPY ranked 3rd yesterday in terms of percentage price change. Below is a price chart of USD/JPY.

USD/JPY Technical Analysis

The first thing we should note is that USD/JPY is now close to its 20, 50 and 100 day averages, located at 109.5567, 109.4229 and 108.9808 respectively, and thus may be at a key juncture along those timeframes. 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. For additional context, note that price has gone up 6 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 20 buy signals on our radar and 19 sell signals. This imputes a buy/sell ratio of 1.05, which is neutral. As for the rationale, technical traders seem to be citing the appearance of a channel technical pattern. Here’s a piece we found on; below is a short snippet from it to give you a taste.

One the weekly time frame, price was met in an area where a lot of previous resistance was found in the region of 111.280-111.450….This recent bullish impulsive move has pushed into the weekly resistance zones with the wick piercing it….I see us coming back down within a channel before pushing higher.