11, February 2016

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The debt market dynamics indicates the dollar possible strengthening: the 10-year US and Japanese government bonds yields differential expanded which increases the investing attractiveness to the US assets. Traders followed Janet Yellen comments as her speech could easily reverse the trend, or on the contrary, strengthen it. After this speech the dollar weakened against the yen.

The first support resides at 113.80, the next is at 113.00. The first resistance stands at 114.60, the next one is at 115.40.

There is a confirmed and a strong sell signal. The price is under the Ichimoku Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show a downward movement. The downward movement will be until the price is under the Cloud.

The MACD indicator is in a negative territory. The price is decreasing.

Trading recommendations

The downward movement will be continued. When the price consolidates below the level of 113.80 it may go to the level 113.00.