05, September 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

The yen strengthened slightly against the dollar. Obviously, the technical levels and the Bank of Japan rate outcome expectations became a deterrent to the USD/JPY growth. The Japanese regulator did not change anything and confirmed the economy optimistic assessment, despite the slowdown in the economic activity, after the sales tax increase in April. This decision has no effect on the market, the dollar/yen was traded in a narrow range. As for the future, it is likely that the calmness will last until the European Central Bank decisions and the USA economy data which can give fresh guidelines for the trading.

The American dollar is testing the historical resistance level 105.20 strength.

The price is finding the first support at 104.80, the next one is at 104.35. The price is finding the first resistance at 105.20, the next one is at 105.60.

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 a horizontal movement and the Kijun-sen shows an upward 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

The pair can grow to the resistance level of 104.35. We do not exclude the growth to 105.70.