07, November 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The yen almost fell to the seven year low against the dollar after the Bank of Japan Haruhiko Kuroda said that it had not seen any limits for the fight with deflation. He also said that he had seen no limitations in the means that the central bank could use for this purpose.

The price had found the strong resistance at the level of 114.60. The US dollar decrease against the Japanese yen is amid the increased volume.

The price is finding the first support at 114.60, the next one is at 113.50. The price is finding the resistance at 115.80.

There is a confirmed and a strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen shows show a horizontal movement and the Kijun-sen shows an upward movement. The upward movement will be until the price is above the Cloud.

The MACD indicator is in a positive territory. The price is consolidating.

Trading recommendations

The potential growth target is the resistance level of 115.80. We don’t exclude a larger bullish correction soon.