10, August 2016

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The dollar remains strong against its rivals on the back of the strong Labor data in the USA.

Current situation

The USD/JPY closed bearish yesterday. The dollar retreated from the resistance 102.50 which is defended by the sellers. The resistance is at 102.50, the support comes in at 101.40.

MACD indicator is at the centerline. RSI is neutral.

Technically, the 4 hours chart shows that the price was struggling with the 50-EMA which limits its growth. An attempt to break the EMA failed and the instrument returned below. The moving averages (50, 100 and 200) direction is downwards in the mentioned time frame.

Trading recommendations

If the price breaks above 102.50, then this could lead to a renewed buying momentum, possibly towards 103.50. Alternatively, the USD/JPY will decrease to 101.40.