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Don't oppose the beast

USDJPY Tech analysis by Simon Kazinsky on 14:53 September 18, 2014 EST



USDJPY is making big advances in a very short period of time. But looking at a longer term chart, in this case the weekly, we can see that the move is not overdone yet when comparing with the dynamics of this pair in the past. In addition, price is above the relevant moving averages and the divergence between current price and the moving average is not at an extreme (as shown by the blue arrows that represent extreme cases of divergence in the past).

Retail traders are at this moment heavily short the pair which is a good bullish signal.

In all, I am of the opinion that USDJPY can progress further up in the coming weeks, and opportunities to buy should be considered by analysis and finding entry points on short timeframe USDJPY charts.


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