12, June 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The Japanese yen rose against the dollar. The yen buying began amid the stock market falling in Japan and was interrupted by the U.S. session when the U.S. yield bonds started the growth. However, the dollar could not neutralize losses against the yen. Reason to raise interest in the yen could be waiting the rate outcome of the next Bank of Japan meeting, scheduled to the coming Friday.

A small consolidation near the uptrend line 102.35 has not led to the rapid price bounce upwards. The sellers managed to reverse the current trend, breaking down the trend line support level 102.30.

The price is finding the first support at 101.60, the next one is at 101.30. The price is finding the first resistance at 102.23, the next one is at 102.70.

There is a confirmed and strong sell signal. The price is below the Cloud and it is above the Chinkou Span. The downtrend movement will be until the price is below the Kijun-Sen. The Cloud is neutral.

The MACD is in a negative area and descending confirming the current sell sentiment.

Trading recommendations

The 102.30 support breakdown in the short term can open the way to the next level, located at around 102.00.