10, June 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The last week dollar/yen confrontation was held mostly at advantage of the U.S. currency, which was supported by the profitability Treasuries growth and the stock market optimism. However, by the end of the week the dollar growth stalled against the yen - partly under the pressure from technical factors, but mostly due to the change of situation at all the same U.S. government debt market, where bond yields began to decrease.

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.

There is a confirmed and strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The uptrend movement will be until the price is above the Kijun-Sen. The Cloud is growing.

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

Trading recommendations

The U.S. dollar growth against the yen was suspended near the strong resistance level 102.65. The exposure of this level is high enough, and can be traced directly to the last four trading months.

The approach to the resistance level 102.65 occurred amid decreasing volumes, but in the uplink direction, within which the trade continues at the present time. It is likely that the level can be broken in the short term with the plan - working week, downward trend line 103.20 - 103.10

The trend line retest is more likely to be accompanied by a bounce down.