11, August 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The pair got the support from a small increase Japanese stock market indices growth, they returned to their original positions that had provoked the fall of the American government bond yields. News from Europe could not have affected the instrument.

The price pullback to the resistance level of 102.25 is a good signal for the continuation of the downtrend. The bounce allowed sellers to test the strong support 101.75

The price is finding the first support at 101.60, the next one is at 101.00. The price is finding the first resistance at 102.23, the next one is at 102.70.

There is a confirmed and weak sell signal. The price is below the Cloud and it is above 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 below the Cloud.

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

Trading recommendations

The price resumed the downward movement. The price will decline to 101.60 first.