09, May 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The 101.35 support level looks very strong. It has kicked the price up five times for three months. The sixth approach to this level on reducing volumes can repeat the scenario. The pair can bounce up to the resistance level 102.65.

The first support is 101.60, the next one is 101.00. The first resistance is 102.23, the next is one 103.00. There is a strong and confirmed sell signal. The price is under the Cloud and it is above the Chinkou Span.

The downtrend movement will be until the price is under the Kijun-Sen.

The MACD histogram is horizontal, indicating the current corrective movement rates.

Trading recommendations

The price can consolidate a while before it bounces up. The lower the candle shadow at the level retest is the stronger it will bounce up.