02, May 2016

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The Bank of Japan did not increase the current easing program, and investors began to leave the Japanese market in panic. The pair dollar/yen sharply fell. The dollar fell when the Fed hinted that it might postpone the rates hike. Last Friday Japan had the day off. Meanwhile, the United States published Core Personal Consumption Expenditure for March (the previous value was 0.2% m/m, the data came in at the forecasted level 0.1% m/m).

The price is finding the first support at 106.60, the next one is at 105.80. The price is finding the first resistance at 107.40, the next one is at 108.20.

There is a confirmed and a strong sell signal. The price is under the Ichimoku Cloud and it is under the Chinkou Span. The Tenkan-sen shows a downward 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 negative territory. The price is decreasing.

Trading recommendations

After the support level of 106.60 breakthrough down the way to the support 105.80 will be opened.