11, June 2015

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

Japan has published the machinery and equipment orders release. The machinery and equipment orders rose up to + 3.0% y/y in April and rose up to + 3.8% m/m. It is industrial production leading indicator and it is closely watched by traders. However, most of the positive data had a negative impact on the yen and a positive effect on the Japanese stock market.

We observe the Japan and the US negative bond yields increase on the bond market which is also a bullish factor for the US dollar.

The price is finding the first support at 122.40, the next one is at 121.60. The price is finding the first resistance at 123.50, the next one is at 124.30.

There is a confirmed and a strong sell signal. The price is below the Cloud and it is below the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement and form a “Dead cross”. The downward movement will be until the price is under the Cloud.

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

Trading recommendations

We expect the 122.40 line break that will open the way for the sellers to 121.60, further then towards 120.40.