11, September 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The yen continued to fall against the dollar in yesterday's trading and came to the new local minimum. The investors' opinion that the Bank of Japan may supplement the quantitative easing package is the driver for this pair. In addition, a support for the dollar against the yen was resumed by the U.S. "Treasuries" yield growth at the yesterday's session.

The upper bound breakthrough was followed by the price short-term consolidation formation below the support level of 106.30.

The price is finding the support at 106.70, the next one is at 106.30. The price is finding the resistance at 107.10.

There is a confirmed and a strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show an upward movement. The upward movement will be until the price is above the Cloud.

The MACD indicator is in a positive territory. The price is growing.

Trading recommendations

The potential growth target is the resistance level of 107.10.