08, July 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The pair is being traded lowering. Obviously, the other day of the U.S. long weekend the short-term investors decided to take profits and even a slight increase in the Nikkei index didn’t push the market to

the increase the propensity to take risks. The dollar/yen is likely to grow due to the Central Bank policies polarity of these countries, and also in the "hawkish" statements character from the Fed leaders

The trading is within rectangle levels of 101.30 - 102.70. Another approach to the strong support level of 101.30, which for the six months was knocked the price upwards was fallowed by a bounce.

The price is finding the first support 101.60, the next one is at 101.00. The price is finding the first resistance at 102.23, the next one is at 102.60. There is a confirmed and weak buy signal. The price is above the Cloud and it is above the Chinkou Span. The upward movement will be until the price is above the Kijun-Sen. The MACD indicator is in the positive territory.

Trading recommendations

The volumes are decreasing not supporting neither northern nor southern movement. If the buyers get to the mark 102.70 at low volumes we expect a consolidation with a further price bounce upwards.