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SAR still trailing the falling USD/JPY rate

We see an injection of volatility in the already heavy looking USD/JPY pair.

The washout in today's trading has expanded the Bollinger® bandwidth indicator for four consecutive hours beyond the maximum width seen in a week of trading. Moreover, the same 1hr charts show recent close prices printing below the 50-period EMA, a bearish condition that should it persist, would help keep the SAR indicator trailing above the price.

A change of direction would be quickly noticed by the SAR, implying USD/JPY shorts are taking profit. Risks exist the volatility and the plummeting price action extend to higher time frames.

USD/JPY breaks below 119.00 as USD plummets

USD/JPY dropped below 119.05, previous lows, and accelerated to the downside. It printed a fresh 2-week low at 118.77 and remains near the lows under pressure as the US dollar falls across the board.
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Warning of a potential short-term bottom in USD/SGD

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