USDJPY Down 1 Pips On Hourly Chart, is Inching Close to 20 and 50 Day Averages; Pin Bar Pattern Appearing on Chart

Hourly Update

(Last Updated September 15, 2020 23:14 GMT)

At the moment, USDJPY’s rate is down -100 pips (-0.01%) from the hour prior. USDJPY has seen its price go down 4 out of the past 5 hours, thus creating some compelling opportunities for bears. If you’re a trend trader, consider that the strongest clear trend on the hourly chart exists on the 100 hour timeframe. The moving averages on the hourly timeframe suggest a bullishness in price, as the 20, 50, 100 and 200 are all in a bullish alignment — meaning the shorter durations are above the longer duration averages, implying a sound upward trend.

USDJPY End of Day Recap

Updated 00:30 GMT (04:30 EST)

The back and forth price flow continues for USDJPY, which started today off at 106.131, up 2 pips 0.01% from yesterday. Out of the 40 instruments in the Forex asset class, USDJPY ended up ranking 21st for the day in terms of price change. Below is a price chart of USDJPY.

USDJPY

USDJPY Technical Analysis

Notably, the current price of USDJPY 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. The clearest trend exists on the 90 day timeframe, which shows price moving down over that time. Also of note is that on the 14 and 30 day bases price appears to be forming a base — which could the stage for it being a support/resistance level going forward. Or to simplify this another way, note that out of the past 14 days USDJPY’s price has gone up 9 them. Also, candlestick traders! Note we see pin bar pattern appearing here as well.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on USDJPY, with 8 buy signals on our radar and 19 sell signals. This imputes a buy/sell ratio of 0.42, which is bearish. As for the rationale, technical traders seem to be citing the appearance of a triangle technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

USD/JPY has been trading within a Symmetrical Triangle chart pattern….If the direction of the breakout is higher or lower Key Support Levels: 106.415, 106.88, 107.678Key Support Levels: 105.173, 105.30, 104.144 #JustTradeFxOnlinePossible Long Move: Entry: 105.45Target: 106.70Stop: 105.0 Thanks for your love and support….Don’t forget to like and comment, will really love to see your views.


Forex Frank is a forex analyst and market commentator with nearly two decades of experience in currency trading. Follow him on social media: Facebook | Twitter | Instagram