05, May 2015

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

In the absence of Japan and the US important macroeconomic statistics investors will focus their attention on the stock and bond market dynamics. The Tokyo stock markets were closed due to the public holiday. On the contrary, there was the Japan and the US bond yields increase on the debt market which is a bullish factor for the pair.

Buyers were able to break through and consolidate above the round resistance level of 119.20. At the moment the mark of 119.20 is the strong support.

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 suppose the pair will go to 120.40 first. Having overcome the first target the price might go upwards to 121.60.