By Russell Glaser – The USD/JPY illustrates a pair that is trading in a trending environment and is testing new lows following a breakout move last week.
As shown on the daily chart below, the USD/JPY is trading in a perfect order. Prices are not only trading below the major simple moving averages (SMA), but the SMAs are currently aligned in an order by their respective timeframe from longest to shortest. The 200-day simple SMA is on top, followed by the 100 SMA, 50 SMA, 20 SMA, and 10 SMA in that order. As such, this identifies a strong trending environment.
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