07, August 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The dollar/yen that was rising sales at the first part of the yesterday's session returned to its original positions by the end of the day. The market risk aversion has increased amid the tensions escalating between Russia and Ukraine, which is reflected in the stock markets and prompted a return to the yen which is a safe haven. The American dollar corrective weakness against the Japanese yen was stopped at the support level of 102.23. Short-level tests were followed by the price rebound upwards. However, there was not any upward trend continuation, the buyers failed to raise the price above 102.70.

The price is finding the first support at 101.60, the next one is at 101.00. The price is finding the first resistance at 102.23, the next one is at 102.70.

There is a non-confirmed and a weak sell signal. The price is above 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 decreasing.

Trading recommendations

The downward trend line 102.23 retest is more likely to lead to the consolidation. After that, the trend is expected to be continued upwards.