USD/JPY Aggressive Bearish Trend Reaches HFT Buy Area!

FX Trading Revolution Team FX Trading Revolution

We are analyzing the activity of HFT algorithms in the Forex market and have noticed aggressive selling on the USDJPY currency pair.

The bearish move kicked off as the risk mood soured again on new tariff actions from "the Donald" and USDJPY has now reached both the light HFT buying pressure and the medium HFT buying pressure zones which are noted at 109.41 and below, and, at 108.957 and below, respectively.

The advanced FxTR overbought/oversold indicator is showing that USDJPY is now deeply in overbought territory on the 1-hour intraday timeframe. The extent of oversold conditions is also confirmed by the "classic" Stochastic Oscillator which value is way below the 20 level oversold watermark. The Improved FxTR CCI indicator is naturally showing the trend to be strongly bearish.

Picking a bottom in such situations is difficult, and the downtrend may just continue lower but a reversal becomes more likely as the price drops lower. The strong HFT buying pressure zone is today seen at 108.504 and below.

A bullish signal within the HFT buy zones combined with a bullish crossover on the Stochastic Oscillator could be a good trigger signal for a short-term long trade which would benefit on the overstreched downtrend.

USDJPY Current Trading Positions

Sell 44%

Buy 56%

Avg Sell Price 109.56

Avg Buy Price 109.80

Liquidity Distribution

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FX Trading Revolution Team

FX Trading Revolution

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