11, November 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The dollar began to fight for its position against the Japanese currency. A pessimism towards the dollar became evident on Friday and the US dollar declined at the end of the trading day within the pair USD/JPY. The US dollar sales for the yen began after the US labor market report, some of which contained information about the forecasts failure. The Bank of Japan minutes and the Institute president H. Kuroda’s speech showed a clear intention to maintain the easing policy and increase incentives if required.

Buyers twice tried to get closer to 115.80 resistance, but without success. There was the price rebound downwards. The price rebound from the level allowed sellers to get out of the rising channel. The pair showed some growth and closed the trading day above the level of 114.60 yesterday.

The price is finding the first support at 114.60, the next one is at 113.50. The price is finding the resistance at 115.80.

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 a horizontal movement. The upward movement will be until the price is above the Cloud.

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

Trading recommendations

The pair can grow to the resistance level of 115.80.