04, May 2015

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

Firstly, it is difficult to expect the United States ISM manufacturing index positive data. Secondly, sales on the US stock market after the GDP weak report publication for the first quarter may cause a wave of carry trade transactions and against this background the Japanese yen may receive additional support.

Sellers have failed to break through the strong support level of 118.30. The pair rebounded upwards and broke through the resistance level.

The price is finding the first support at 119.20, the next one is at 118.30. The price is finding the first resistance at 120.40, the next one is at 121.60.

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 shows an upward movement and the Kijun-sen shows 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 growing.

Trading recommendations

We expect the 120.40 line break that will open the way for the buyers to 121.60.