05, August 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The U.S. dollar strengthening against the Japanese yen has allowed the buyers to break above the downward trend line 101.60 and the strong resistance level of 102.70. The resistance level of 102.70 break was short-lived. Two day consolidation above the breakout was followed by a short-term break down. The level reverse breakthrough was followed by the increased volume, but at the same time, this breakthrough is not considered as a signal to reverse the upward trend.

The price is finding the first support at 102.23, the next one is at 101.60. The price is finding the first resistance at 102.70, the next one is at 103.00.

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 and the Kijun-sen show 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 correcting.

Trading recommendations

Currently, the price is trading above the resistance level 102.23 which has already become the support. The potential growth target is the resistance level of 103.35.