USD/JPY up and back down

USD/JPY after taking a quick upward retracement has gotten back into downwards trend quickly and that quick move seems to have favored long term traders more than anyone else. Currently traders will be looking to sell USZD/JPY around 78.20 level and capture on the opportunity in the downward trend. The initial target can be seen around 97.00 level and once USD/JPY manages to break below 79.00 level, the next level to be targeted is 76.40 level.

Looking at the moving averages used in the daily charts, it can be seen that the retracement was directed towards the long term moving average and after touching that line, the USD/JPY seems to resume its downward trend and currently USD/JPY has managed to break below 78.00 level and has managed to sneak below both medium and short term moving averages. The moving averages are also suggesting that USD/JPY will be looking for an extended downward move and no it is a good time to sell USD/JPY.

Looking at the RSI in the daily charts which is just above 40, seems to have more than enough space to allow USD/JPY to make an extended move in the downward trend and traders will again be looking to capture on this indication by selling USD/JPY.

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