05, June 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The Japanese currency fell against the dollar again. Greenback growth against the yen was supported by the Japan stock market optimism where the Nikkei rose again and the sale of U.S. Treasury bonds to increase their profitability. It is possible that the market has remembered the Bank of Japan Governor H. Kuroda's statement that if there were risks to achieving the inflation target of 2.0%, then BoJ has ways to eliminate them through further monetary easing.

The buyers came to the resistance level 102.65 at decreasing volumes. The short-term level retest was accompanied by a small upper bound uplink 102.75 puncture which acts a further obstacle to the rising trend.

The price is finding the first support at 101.60, the next one is at 101.00. The price is finding the first resistance at 102.23, the next one is at 103.00.

There is a confirmed and strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The uptrend movement will be until the price is above the Kijun-Sen. The Cloud is growing.

The MACD indicator is growing.

Trading recommendations

The growth main target is the strong resistance level 102.70. After consolidation above the pair might grow to 103.