12, August 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The Japanese yen is still in multidirectional movements against the dollar and closed trading at opening prices. The pair was turned up under the pressure as the BoJ meeting results has not announced any changes and the Japan stock market collapse where the Nikkei fell by almost 3%. The "bulls" support for the dollar was seen during the American session when the States stock markets showed the opposite to the Japanese one sentiment - the indices have grown, the market debt price fell.

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

We expect a short-term growth at the beginning of this week. The potential growth target is the strong resistance level of 102.60.