06, April 2015

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The US and the Old World Stock exchanges were closed and therefore it is difficult to note increased volatility for the pair before the Non-Farms publications. The positions consolidation within the carry trade is completed.

The whole week the Japanese yen was in the flat between the levels of 120.20 and 119.40. The price sharply fell and broke through the support level of 119.20 amid the US negative statistics.

The price is finding the first support at 118.30, the next one is at 117.50. The price is finding the first resistance at 119.20, the next one is at 120.40. 

There is a confirmed and a strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement and form a “Dead Cross”. The downward movement will be until the price is under the Cloud. 

The MACD indicator is in a negative territory. The price is correcting. 

Trading recommendations

If the price fixates below the support 118.30, it may continue the downward trend in the short term. The potential target is 117.50.