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.
USD/JPY Pair
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.
