03, March 2016

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

By the end of the trades the pair USD/JPY fell after a growth. The market has not decided yet what to do with the Bank of China's decision to reduce reserve requirements for banks. The yen was the main outsider having lost all points scored against the dollar.

The yen came under influence of the USA ADP report on Wednesday. The data came in at the level of 214K against the forecasted 189K.

The first support resides at 113.00, the next is at 112.20. The first resistance stands at 113.80, the next one is at 114.60.

There is a confirmed and a strong buy signal. The price is above the Ichimoku Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show an upward 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 targets are the resistance levels: 113.80, 114.60.