02, October 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The Japanese yen continues to lose ground against the dollar. However there was a price falling at the end of the trading day.

The Bank of Japan will have a meeting the next week and it buys bonds in the amount from $60 trillion ($ 548 billion) to 70 trillion in order to fight the deflation. The Central Bank is trying in such a way to increase the inflation rate up to the annual 2%.

At the moment, the buyers were able to consolidate above intermediate resistance level of 109.70.

The price is finding the first support at 109.40, the next one is at 109.00. The price is finding the resistance at 110.00.

There is a confirmed and a strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement. The upward movement will be until the price is above the Cloud.

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

Trading recommendations

The potential growth target is the resistance level of 110.00.