10, November 2016

USD/JPY (a 4-hour chart)

General overview

The dollar weakened across the board when Donald Trump was elected as the 45th US President.

Current situation

The USD/JPY pair sharply fell overnight, reaching September lows. However, the sell-off lost its legs around 101.16 where the pair turned around and rallied to the 103.50 region where the upward impetus ran out of steam, the price got under selling pressure again. However, the pair extended its gains during the North American hours. Prices moved higher, broke the level 104.00 and headed to 104.50. The pair traded around the 200-EMA ahead of NY in the 4 hours chart opening. The 200-EMA provided a solid resistance, limiting the dollar further growth. The moving averages are turning downwards, following the price. The resistance can be found at 103.50, the support comes in at 103.00.

The MACD histogram decreased which indicates the sellers’ strength. The RSI indicator is near overvalued territory, favoring a new move lower.

Trading recommendations

If the downward tone remains intact the dollar will keep losing ground. Sellers will lead the price downwards towards the level 102.50. A technical correction towards 104.00 is expected the near-term. A daily close below the mentioned level will open the way towards 103.50.