07, July 2016

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The dollar fell against the yen, as British pound sales had an upward pressure on the Japanese currency. The yen also received support when traders began closing their long positions in the emerging markets.

Current situation

The pair has been correcting for 4 days in a roll. The instrument decreased as a risk aversion sentiment dominated in the financial word. The price set a new low since June 24th. The USD/JPY reached a strong psychological level 100.00. The resistance stands at 101.40, the support is at 100.00.

The indicators bounced from the oversold area in the 4 hours chart. MACD remained in the negative zone. At the same time RSI grew away from the oversold area.

The moving averages (50, 100 and 200) direction is downwards. The technical overlook is bearish.

Trading recommendations

In the event that the sellers manage to force below 100.00 the decrease will be continued to 99.00. The USD/JPY may recover to 102.50.