Thursday, October 22, 2020

USD / JPY - Slow Moving Price After Plunging 120 Pips!

 The safe-haven Japanese yen moved weaker against the US dollar in today's trading after showing the biggest daily strengthening yesterday since the end of August.

On the price chart for the USD / JPY pair, the price has plummeted around 120 pips after the bullish pattern in the previous few days failed to maintain.

Prices moving below the Moving Average 50 (MA50) barrier at the 1-hour price movement at the beginning of yesterday's Asian session continued to decline until reaching the daily low almost touching the 104.300 level, recording a recent 4-week low.

The decline was seen to be further driven by the depreciation of the US dollar which was influenced by the optimistic US economic stimulus package sentiment.

However, any decision should be expected and will affect the direction of price movement on the USD / JPY chart.

Today's price movement is seen flat without clear direction below the RBS (resistance become support) level of 104.800.

A higher rise in prices is expected to test the zone as well as the MA50 barrier level for a bullish trend signal.

If the decline continues, the support zone around 104.00 will be the focus of the price that failed to break when tested in last September's trade.