10, April 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The Japanese currency was the leader in the foreign exchange market trading yesterday and strengthened versus all its major opponents. The Bank of Japan, which did not change its monetary policy, left the stimulation at the same level, and has retained an upbeat assessment of the economy, set the session tone on Thursday.

The pair is going down. The USD/JPY has broken 103, 102.23 and tested 101.60.

The Kijun-sen and the Tenkan-sen are directed downwards. The Tenkan-sen is crossing the Kijun-sen down. The southern movement is strong as the pair is below the Cloud. The Cloud stopped growing and turned down. The southern movement remains until Kijun-Sen is above the price.

The support is at 101.60. The resistance is 102.23.

The MACD histogram is still located in the negative zone and it is lower then its signal line.

Trading recommendations

We think that 101.60 will slow down the descending. The price may bounce up to 102.23 or even higher 103. If the descending movement is resumed the pair will fall to 101.