07, October 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The US dollar stopped its growth and fell against the yen. Earlier it marked the new yearly highs amid the Fed and BoJ monetary policies increase expectations and the Bank of Japan governor Mr. Kuroda's readiness to take the necessary measures to achieve the inflation target of 2%.

The buyers have managed to return the price into the rising channel, breaking up the resistance level of 109.40. The breakthrough has occurred amid the high volume. Then the price decreased and tested the level of 109.00.

The price is finding the first support at 109.00, the next one is at 108.50. The price is finding the first resistance at 109.40, the next one is at 110.00.

The price is in the Cloud and it is above the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a horizontal movement.

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

Trading recommendations

After consolidating above the level of 109.00 the price will bounce upward to the level of 110.00. After the level of 110.00 breakthrough upward the way to the resistance level of 110.60 will be opened.