Trend lower continues...
The USDJPY has been trending lower since yesterday on the back of stock declines on trade wars concerns.
Looking at the 5-minute chart, what I see is the market has done a good job stalling against the 100 bar MA (blue line in the chart above).
The price in the Asian session tested that MA line and found sellers.
In the London/ European session the price tested the blue line again, and found sellers.
The MA currently comes in at 105.61 (and moving lower). For me, that is a barometer for bulls and bears. Stay below and the bears are in control. The trend is still down. Move above and waters are more muddy.
There is another line of importance in addition to the 100 bar MA. That is the trend line.
The price did move above the trend line, right before it went up to test the 100 bar MA in the London session. But that break was quickly rejected.
In the last 20 minutes, that trend line was retested and held.
It it Friday. We have the stock market to contend with all day long. The debate is on whether the tariffs are bad, or justified and making a point to China (the world), that the Trump administration will not give in to unfair dumping. All that has to be decided.
The 5-minute chart shows a pattern that is consistent in a trending market. With the uncertainly, it makes sense to listen to the pattern/ to the technical levels for the clues.
The 100 bar MA is telling me the story. The trend line is too. Stay below is more bearish. Move above, it may not be totally bulls in control, but it is a warning shot across the bow, that the bearish waters are getting more muddy.
