06, October 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The Japanese yen continued its decline after its rise provoked by the Finance vice minister Nobuhide Minorikava stated that the weak currency was affected for the companies, forcing up energy costs. The Japanese yen strengthened against the dollar. Amid the high volumes sellers tried to break through the support level of 108.00. But such a breakthrough has not been successful and the price bounced upward.

The price is finding the first support at 109.40, the next one is at 109.00. The price is finding the first resistance at 110.00, the next one is at 110.60.

There is a confirmed and a strong sell signal. The price is in the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a downward movement. The downward movement will be until the price is under the Cloud.

The MACD indicator is in a neutral territory. The price is growing.

Trading recommendations

The potential decrease targets are the support levels: 109.00, 108.50. When the price comes to the level 108.50 it may consolidate.