02, July 2015

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

Japan released the Tankan economic survey which is traditionally closely monitored both by economists and market traders. According to Tankan surveys during the second quarter - the index for large manufacturers 15 (12 expected), previously 12, this is the first index increase for the first three quarters, the value has been the highest since March 2014. The uncertainty around Greece continues to provide negative impact on risky assets.

The price is finding the first support at 122.40, the next one is at 121.60. The price is finding the first resistance at 123.50, the next one is at 124.30.

There is a confirmed and a strong 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 negative territory. The price is correcting.

Trading recommendations

If the price fixates below the support 122.40, it may continue the downward trend in the short term. The potential target is 121.60.