06, August 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The dollar/yen was being traded in the sideways consolidation and was closed at the starting positions yesterday. For a while, we saw the yen increase against dollar amid the continuing U.S. treasuries profitability fall, but by the session end the situation align the instrument and the result turned out to be neutral.

Three false retests of 103.00 resistance level served as a signal for the downward correction formation. The breakthrough of the support level of 102.70 allowed sellers to revise the uptrend line. The U.S. dollar corrective weakness against the Japanese yen is not supported by the trade volumes.

The price is finding the first support at 102.23, the next one is at 101.60. The price is finding the first resistance at 102.70, the next one is at 103.00.

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 and the Kijun-sen show 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 correcting.

Trading recommendations

The sellers cannot break below the rising trend line of 102.23, so it is likely to expect the price bounce up. The potential growth targets are the two marks: 102.70 and 103.00.