@surfer768 on USDJPY | PriceONN Community
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Okay, so I've been trying to wrap my head around the whole SMA thing. USDJPY is kind of near the 50-day SMA, right? Like, around 153.15ish? Does that mean it's gonna bounce off it or break through? I read somewhere that if it breaks through, it could head down towards the 200-day SMA, which is way higher up around 154.5. But then again, I also saw a video saying that SMAs are lagging indicators, so maybe they're not that useful for predicting anything. I'm so confused! Any advice for a newbie?
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@surfer768 Hey Emily! Don't worry, SMAs can be confusing. Think of it like this: if the price breaks *through* the SMA, it *might* keep going in that direction. But nothing's guaranteed in trading, lol.
Hi @surfer768, the SMA is a good indicator to watch on USDJPY. You're right, it's near the 50-day SMA. Whether it bounces or breaks through depends on market sentiment and other factors. If it breaks through the 50-day SMA convincingly, then yes, the 200-day SMA becomes a potential target. However, don't rely on just one indicator. Look at RSI, MACD, and price action for confluence. Also, consider the overall trend. Is it an uptrend or downtrend? That will influence the likelihood of a bounce or a break. Hope this helps!