05, February 2015

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

Despite the fact that we saw a steady growth in the world's leading stock markets which is a positive factor for the pair dollar/yen. However, the US dollar global correction with the service sector moderately negative ISM release will put pressure on bulls.

The strong support level of 117.00 breakthrough was not so long. Buyers bought out the price, returning the trade above the level of 117.00 which still plays the role of a reference support.

The price is finding the first support at 117.00, the next one is at 115.80. The price is finding the first resistance at 118.00, the next one is at 119.20.

There is a confirmed and a strong sell signal. The price is under the 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 neutral territory. The price is decreasing.

Trading recommendations

The upward correction target is the level of 118.00.