10, January 2017

USD/JPY (a 4-hour chart)

General overview

The Japanese markets were closed amid Coming-of-Age Day. The main point of focus shifted to the Fed's representatives (Rosengren and Lockhart) speeches.

Current situation

Fresh bids around 117.00 helped the US dollar to extend its gains in the Asian session on Monday. However, the buying pressure ran out of steam soon. After reaching the mark 117.50 the pair turned around and returned to 117.00 in the mid-European session. Sellers pushed the spot lower ahead of the NY opening. USD/JPY crossed the 50-EMA downwards and tested the 100-EMA in the 4 hours chart. The 100 and the 200-EMAs maintained their bullish slope while the 50-EMA was flat. The resistance is highlighted at 118.00, the support comes in at 117.00.

MACD indicator was at the centerline. If the histogram returns the negative territory, that will indicate sellers’ growing strength. If MACD enters into the positive area the buyers will take control over the market. The RSI left overvalued readings and headed south.

Trading recommendations

USDJPY needs to regain at least the 118.00 resistance zone to ease the immediate bearish pressure. Otherwise the sellers will move the pair to the 116.00, en route to 115.00.