13, June 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The Japanese yen rose against the dollar during yesterday's session. The market decided to move to the shelter after the World Bank's announcement about the global economic growth forecasts lowering and plus after observing the U.S. government bonds yield reduction on the yesterday trading day. The recent publications have signaled the fall in orders for machinery and equipment for April at -9.1% m/m due to the increase by 19.1% m/m, and it was a little better than expected while the prognosis was at -11.5% m / m

The uptrend line breakthrough, as well as the support level 102.30 could lead to a bulls trend reversal. The price decrease was accompanied by a small volume amount, thereby, has reached the new support located at 102.00.

The brief consolidation near the mark 102.00 can cause a corrective growth only in the short term. The growth target is a downward trend line 102.23. Whereas the 102.23 mark retest is most likely to lead to the downward trend continuation.

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

For definite price drop the sellers need to break below support at around 102.00 to continue the decrease. In case of a successful breakthrough that will open the way to the level 101.30.