02, November 2015

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The short-term bond yields also suggest that the December rate hike possibility is maintained. The two years bond yields increased by 9 pm while the 10 year bond yields rose up by 6 pm.

Earlier the market did not react to the US trade balance positive data. The publication showed that the US trade deficit narrowed to $58.63 billion in September, compared to $ 67.19 billion the previous month, which is less than the forecast of $64.90 billion.

The price is finding the first support at 120.40, the next one is 119.20. The resistance is at 121.60, the next one is at 122.40.

There is a weak and confirmed buy signal; the pair is in the Cloud. The Tenkan-sen and the Kijun-sen are horizontal. If the USD/JPY remains returns above the Cloud the growth will be continued.

The MACD indicator is in a positive territory now. The histogram is decreasing.

Trading recommendations

If the pair returns above the Cloud it has all chances to go to the level of 121.60. As an alternative scenario we will see a decrease to 119.20 and further to 118.40.