12, July 2016

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

Machinery Orders unexpectedly fell in Japan. The strong yen and weak demand undermined corporate profits and spending plans in the country. The unexpected decrease of Machinery Orders indicates a slowdown in the investments.

Current situation

The pair USD/JPY recovered and gained about 2,11% yesterday. The instrument stopped its climbing at the 102.80 area. The resistance stands at 103.50, the support is seen at 102.50.

The 50, 100 and 200 EMAs are moving downwards in the 4 hours chart which is a sell signal. Yesterday the instrument broke through the 50-EMA and 100-EMA downwards in the 4 hours chart. The USD/JPY broke the 50, 100 and 200 EMAs which are turning upwards in the 1 hours chart.

Indicators are moving in the green area. MACD may cross the centerline upwards and move into the positive area. Its growth will indicate the buyers’ strength. RSI is close to the overbought area. If the oscillator continues its growth it will be a buy signal.

Trading recommendations

Buyers have the ball now. We believe the growth will be continued. The pair may grow to the resistance level 103.50. After breaking 103.50 the buyers may advance to 104.50.