USD/JPY At 50 SMA On Weekly Chart
I’m long USD/JPY at around 119 – price is just above 120 now, so I have a small floating profit. I’m in this position for the long haul, with a minimum target of 140 before even contemplating taking any profits, so the move is not very significant from my perspective – doubly so since I’ve been in the position since Q4 of 2014.
As the chart below shows, though, price is now approaching a key level. First, last week’s candle marked another touch of the trendline going back to October of 2012; upon touching that trendline, the market immediately shot back up, creating a pin bar candle – and a potential sign that bulls are in fact defending that trendline. This week’s candle is down, but is just above the 50 week moving average – a level the weekly chart hasn’t been able to close below since late 2012, about the same time the aforementioned trendline began.
USD/JPY Weekly Chart
To me, all this signals an opportunity to add to my existing position. I’ll likely be adding more to my position at 119.