01, October 2015

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

We expected the retail sales positive data output. The PMI production sector growth indicates the industrial production increase. However the data came out worse then forecasted 1,0% at the level of 0,8%. The world leading stock exchanges negative dynamics will contribute to demand for the Japanese yen as a funding currency.

Trades started with bulls’ trend. However, in the second part of the trades, the bears took away the price from resistance level of 120.40.

The price is finding the first support at 119.20, the next one is 118.40. The price is finding the first resistance at 120.40, the next one is at 121.60.

There is a non-confirmed and a weak sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a horizontal movement. The downward movement will be until the price is under the Cloud.

The MACD indicator is in a neutral territory. The price is decreasing.

Trading recommendations

We suppose the pair will go to 119.20 first. Having overcome the first target the price might go downwards to 118.40.