09, August 2016

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

Traders continued closing long positions on the back of the renewed interest towards the risky assets.

Current situation

The instrument is modestly bullish in the short term. The USD/JPY maintained its strong buying tone. The dollar grew in the pair and reached the level 102.50 where it spent the first day of the week. The resistance is at 102.50, the support comes in at 101.40.

MACD indicator is at the centerline. If the histogram enters the positive territory, that will indicate buyers’ growing strength. If MACD returns into the negative area the sellers will take control over the market. RSI is approaching the overbought territory.

The instrument broke the 50-EMA and stayed above it in the 4 hours chart. The moving averages (50, 100 and 200) direction is downwards in the mentioned time frame.

Trading recommendations

If the USD/JPY does make a breakout at that level 102.50 and upward trajectory will be continued towards 103.50.