USDJPY Down 4 Pips Over Past Hour, 2 Day Down Streak Snapped; Breaks Above 20 Day Average

Hourly Update

(Last Updated October 14, 2020 2:15 GMT)

At the time of this writing, USDJPY’s rate is down -390 pips (-0.04%) from the hour prior. It’s been a feast for bears operating on an hourly timeframe, as USDJPY has now gone down 4 of the past 5 hours. If you’re a trend trader, consider that the strongest clear trend on the hourly chart exists on the 100 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 10 hourly candle timeframe, and that such candlestick patterns often denote reversals, this may be worth noting. Most noteworthy in the world of moving averages on the hourly chart is that the 50 hour moving average has been crossed, with price now being below it. The moving averages on the hourly timeframe suggest a choppiness in price, as the 20, 50, 100 and 200 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)

The choppiness in the recent daily price action of USDJPY continues; to start today, it came in at a price of 105.467, up 14 pips (0.13%) since the day prior. Compared to its peers in the Forex, USDJPY gave its buyers a return that ranked 13th in terms of percentage change since the day prior. The price chart of USDJPY below illustrates.

USDJPY

USDJPY Technical Analysis

Notably, USDJPY crossed above its 20 day moving average yesterday. Volatility for USDJPY has been contracting over the past two weeks relative to volatility over the past month. Whether volatility reverts will be something to watch. Trend traders will want to observe that the strongest trend appears on the 90 day horizon; over that time period, price has been moving down. Or to simplify this another way, note that out of the past 14 days USDJPY’s price has gone up 8 them.