05, August 2016

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The yen grew following the Kikuo Iwata comments (a Bank of Japan deputy governor). According to Mr. Kikuo Iwata the regulator does not have any preset agenda for its current policy.

Current situation

The pair USD/JPY remained neutral, staying below 101.40 region. The resistance is at 101.40, the support comes in at 100.40.

The MACD indicator shows a convergence which is a buy signal. RSI stayed close to the oversold area.

The instrument broke the 50-EMA before retreating it in the 1 hour chart. The moving averages (50, 100 and 200) direction is downwards in the mentioned time frame.

Trading recommendations

The pair is neutral, awaiting for the NFP in the US. In the scenario where buyers return to the market the USD/JPY grows towards 102.50. Otherwise, the instrument will decrease to 100.40.