07, May 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

There is continuous consolidation of a strong support level near 101.30 and 101.70 uptrend lines in the medium term. The volumes near the levels are so strong in the area of reduced activity. The chance of a potential bounce up is very high.

The U.S. dollar has strengthened against the Japanese yen in the direction of the rising trendline 101.70 for two years which serves as a good support for buyers. Another retest of the trend is more likely to lead to a continuation of the upward trend.

The first support is 101.60, the next one is 101.00. The first resistance is 102.23, the next is one 103.00.

There is a strong and confirmed sell signal. The price is under the Cloud and it is above the Chinkou Span.

The downtrend movement will be until the price is under the Kijun-Sen.

The MACD histogram is pointing down, indicating the current downtrend movement rates.

Trading Recommendations

The medium-term growth goals are the resistance levels: 103.20, 105.30.