09, June 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The Japanese currency also strengthened against the dollar in yesterday's trading. Technical factors, falling optimism in the country stock market, as well as statements by the BoJ from the yen trading start against the dollar were maintained. The further yen buying was triggered by the events in Europe where the ECB announced its decisions on monetary policy prospects.

High of April - the resistance level 102.30 currently stopped the U.S. dollar corrective decrease against the Japanese yen.

The price is above the Cloud and above Chinkou-Span, that’s a strong and confirmed buy signal. The Cloud is directed upwards. The upward movement remains until Kijun-Sen is under the price.

The price is finding the first support at 102.23, the next one is at 101.60. The price is finding the first resistance at 102.70, the next one is at 103.20.

The MACD is in a positive area and is descending confirming the current price sentiment.

MACD is in the positive territory, the indicator is decreasing.

Trading recommendations

Sellers approached to the level at high volume, it could lead to the breakthrough 102.30 down in the short term. The potential break target is the upper channel 102.00 lower boundary.