13, January 2016

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

Investors still avoid the "risky assets". This factor is a positive one for the yen as a funding currency. The Japanese Government expressed its strong concerns about the Chinese economy slowdown and about the external risk factors, noting that the country economy keeps growing, despite the China problems.

The first support resides at 117.00, the next is at 116.20. The first resistance stands at 117.80, the next one is at 118.40.

The indicator shows a strong sell signal. The price is under the Cloud and in under the Chincou-span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a horizontal movement. 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

The flat trading will be continued at the level of 117.80.