01, December 2015

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The bearish sentiment prevailed at the market. The Japanese October industrial production release surfaced a pleasant surprise amid the PMI index positive dynamics. However it was not enough for the downward movement development and the pair increased.

The price checked once again the correctional corridor support for its strength - the level of 122.40 and then its growth has resumed. The trade was at the marks of 123.20. The current growth is the lateral correction continuation in the corridor of 123.20-122.40.

The price is finding the first support at 122.40, the next one is 121.30. The price is finding the first resistance at 123.20, the next one is at 123.80.

There is a non-confirmed and a weak buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a horizontal movement and form a “Golden Cross”. The upward movement will be until the price is above the Cloud.

The MACD indicator is in a positive territory. The price is growing.

Trading recommendations

We expect the level of 123.20 break that will open the way for the buyers to 123.80.