05, November 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The yen sales were continued, despite the fact that it was a day off because of the holiday in Japan on Monday. The BoJ statement on Friday expressed even more clearly the contrast between the Japan monetary policy and the US regulators that reinforced and supports the dollar growth impulse against the Japanese yen. In addition, the Japan Government Pension Investment Fund (GPIF) supports the yen sales about the fact that it plans to increase significantly the foreign stocks share in their portfolio, and it is a negative factor for the Japanese currency.

The growth rates fell in the area round the resistance level 114.20, of which at this time formed a downward pullback. At the same time the formed correction was also not supported by volumes.

The price is finding the first support at 113.00, the next one is at 112.50. The price is finding the resistance at 114.20.

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 increasing.

Trading recommendations

The approach to the level of 112.50 leads to a price rebound upwards. The upward bounce potential target is 114.20.