USD/JPY Up 8 Pips Over Past Hour, Sentiment Strongly Favors Sellers; Eyes 20 and 50 Day Averages

Hourly Update

(Last Updated October 5, 2020 16:22 GMT)

At the time of this writing, USDJPY’s rate is up 0.08 (0.08%) from the hour prior. This move is a reversal from the hour prior, which saw price move down. 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 an uptrend on the 20 hourly candle timeframe, and that such candlestick patterns often denote reversals, this may be worth noting. Of note is that the 100 hour changed directions on USDJPY; it is now pointing up. 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 105.314, down 19 pips (0.18%) since the day prior. Compared to its peers in the Forex, USDJPY gave its buyers a return that ranked 27th in terms of percentage change since the day prior. The price chart of USDJPY below illustrates.

USDJPY

USDJPY Technical Analysis

Coming into today USDJPY is now close to its 20, 50, 100 and 200 day averages, located at 105.4577, 105.7246, 106.5772 and 107.522 respectively, and thus may be at a key juncture along those timeframes. The clearest trend exists on the 90 day timeframe, which shows price moving down over that time. For additional context, note that price has gone up 7 out of the past 10 days.

The View From Around the Web

Of note is that traders in aggregate have opinions on USDJPY, with 4 buy signals on our radar and 16 sell signals. This imputes a buy/sell ratio of 0.25, which is bearish. As for the rationale, technical traders seem to be citing the appearance of channel and relative strength index technical patterns. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

We have created a new low on October 2nd (yellow circle) and price moved up to hit the right tip….New low created (yellow dot)2….Right tip created.