Power Course Instructor’s Response:
Take a look at the chart below...
Even though this USDJPY pair has been in a bullish cycle for a while, the trend bias on the pair is to the downside...note how the 200 SMA has been respected and price action is still trading below it and moving away from it. Also note that resistance at 100.00 (strong psychological level) is lining up with the 200 SMA.
Once that candle closes below trendline support, short positions would be the higher probability trades since the pair is now trading back into to its bearish trend.
Taking a look at a Daily 1 year chart, we can see again that the overall downtrend is still in place.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.
