03, May 2016

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The USA Manufacturing PMI for April rose to 51.8. Traders expected the index to decrease to 51 versus 51.5 in March. Manufacturing PMI in Japan exceeded our expectations and rose to 48.2 vs. the forecast of 48.0.

The price is finding the first support at 105.80, the next one is at 105.00. The price is finding the first resistance at 106.60, the next one is at 107.40.

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 and the Kijun-sen show 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 consolidating.

Trading recommendations

We suppose the pair will go to 105.80 first. Having overcome the first target the price might go downwards to 105.00. We do not exclude the upward bounce to 107.70.