07, April 2016

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The decrease of risk appetite is a positive factor for the yen as a funding currency. The Bonds Market supported bears as well. The USA and Japanese government bonds yield differential decreased, which contributed to the inflow of capital into the Japanese assets.

The price is finding the first support at 109.00, the next one is at 108.20. The price is finding the first resistance at 109.80, the next one is at 110.60.

There is a confirmed and a strong sell signal. The price is under the Ichimoku Cloud and it is under 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 negative territory. The price is decreasing.

Trading recommendations

The potential decrease targets are two levels of support: 109.00 and 108.20.