USDJPY Down 1 Pips in Last Hour, Crosses 20 and 50 Day Moving Averages; in an Uptrend Over Past 14 Days

Hourly Update

(Last Updated October 6, 2020 15:13 GMT)

Currently, USDJPY’s rate is down -50 pips (0%) 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 pin bar 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 bearishness in price, as the 20, 50, 100 and 200 are all in a bearish alignment — meaning the shorter duration moving averages are below the longer duration averages, implying a stable downward trend.

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 105.744, up 43 pips (0.41%) since yesterday. Compared to its peers in the Forex, USDJPY gave its buyers a return that ranked 12th in terms of percentage change since yesterday. Let’s take a look at price chart of USDJPY.

USDJPY

USDJPY Technical Analysis

First things first: USDJPY crossed above its 20 and 50 day moving averages yesterday. The clearest trend exists on the 14 day timeframe, which shows price moving up over that time. It should be noted, though, that a trend in the opposite direction, going down, exists on the 90 and 30 day timeframes. 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 14 buy signals on our radar and 32 sell signals. This imputes a buy/sell ratio of 0.44, 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.

EURUSD* Technical analysis**: Trend: 0 Trend power: 0 Overbought/Oversold : absent Preferable trade direction : sellSell near 1,1860 with a stop loss above 1,1890 and a take profit near 1,1760….GBPUSD Technical analysis**: Trend : 0 Trend power: 1 Overbought/Oversold : absent Preferable trade direction : sellSell near 1,2990 with a stop loss above 1,3040 and a take profit near 1,2860….USDJPY Technical analysis**: Trend: -1 Trend power: -1 Overbought/Oversold : absent Preferable trade direction : sellSell near 106,00 with a stop loss above 106,50 and a take profit near 105,30.