USD/JPY downside opening up towards 1hr 50 sma

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 24, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    USD/JPY is currently trading at 112.36 with a high of 112.48 and a low of 112.28 so far, while the downside opening up towards 1hr 50 sma.

    USD/JPY is recovering in a wide, but key support zone defined by Sep/Oct 2014 resistance. Price action overnight was determined by an ever-changing risk mood. Just as we thought markets were robust enough to move on from yesterday's sad events in Brussels, it appears investors are more nervous than at first glance judging by the performances in markets overnight. The biggest movers were in the commodity sector, setting off a mixed mood, although allowing the US dollar some support in what might otherwise a far stringer downtrend in USD/JPY.

    BOJ 'summary of opinions': Risk balance still down

    USD/JPY levels

    Valeria Bednarik, chef analyst at FXStreet explained that in the 4 hours chart, the pair stalled its rally a handful of pips below its 100 SMA. "The technical indicators have also turned lower, but remain well above their mid-lines, limiting chances of a sharper decline, as long as buyers surge on approaches to the 112.00/10 region." Should the price do so, the 1hr H&S confirmation could give way to a slide and subsequent grind towards aforementioned key support again in the region of Sep 26th weekly stick high of 110.07.
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