06, July 2016

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The yen grew amid an increased demand for the safe assets. This was due to the new signs of uncertainty about the future of the UK and Italian banks.

Current situation

The USD/JPY got under pressure when traders began profit-taking. The pair decreased and set a new local low at 101.40. The resistance stands at 102.50, the support is at 101.40.

The indicators (MACD and RSI) continued giving signals to sell. MACD decreased, RSI touched the oversold area. The instrument moved from the 50-EMA on the 4 hour chart. The Moving Averages (50, 100 and 200) are moving downwards, it is another sell signal.

Trading recommendations

We expect the 101.40 line break that will open the way for the sellers to 100.30.