04, August 2016

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The yen weakened following the BoJ’s minutes publication. The regulator plans to assess the impact of the negative rates on the economy.

Current situation

Traders pushed the dollar higher in the USD/JPY pair. The USD/JPY is trying to make a breakout at the resistance level of 101.40. The resistance is at 101.40, the support comes in at 100.40.

The indicators MACD and RSI still generate sell signals. MACD grew which indicates the sellers’ positions weakening. The indicator shows a convergence. RSI left the oversold area.

The instrument snapped the 50-EMA in the 1 hour chart. The 50, 100 and 200 Day EMAs are moving downwards.

Trading recommendations

We expect the 101.40 line break that will open the way for the buyers to 102.50.