06, June 2016

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

Japanese currency finished last week in a green zone due to renewed discussions regarding differences among the US and Japanese monetary policies.

Current situation

The interest to the yen grew after a weak Non-Farms report. The pair fell and broke the levels 108.20 and 107.40. The resistance is at the level of 107.40, the support is at 106.60.

MACD is in a negative area. The histogram is above in the signal line. MACD kept decreasing. The indicator is showing a sell signal. The indicator RSI is below 30 and is oversold.

Trading recommendations

If the price fixates below the support 106.60, it may continue the downward trend in the short term. The potential target is 105.80.