USD/JPY rose on Friday. Short sellers were forced to close their positions; They also traded in US dollars, which led to a brief contraction of the manuals in the Forex pair. USD/JPY rose to a maximum of 117,063; In total, it gained more than 92 pips at the opening price of 116,140. This was another critical step that proved to be a spectacular week in Forex.
Also, the high global income after yesterday’s meeting of the ECB contributed to the weak Japanese yen. However, tech traders have lowered the USD/JPY to justify the previous upper double formation. This played a significant role in the last climb. Instead, the price went in another direction. Consequently, they were forced to return the USD/JPY. They also brought the pair with upward parabolic momentum to close their positions. This step is proof that, at some point, technicality is as essential as the basics.
Most importantly, traders are advised to question the informational accuracy of this latest move in USD/JPY; Due to its very technical nature. Despite their future price, USD/JPY is now almost in the middle of the giant sell zone from 118.477 to 115.597. Consequently, re-approving sellers, even temporarily, is a considerable risk at this level. At the very least, traders should be careful when stockpiling too much stock in one direction; Seek further confirmation, fundamental or technical, before taking prominent positions.