13, July 2016

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

Shinzo Abe's victory in the recent elections did not support the yen. The yen remained under bearish pressure waiting for the fresh stimulus package. Risk appetite also put pressure on the yen.

Current situation

The yen fell to its lowest levels in over two weeks against the dollar. The pair USD/JPY continued its growth and broke the resistance levels of 103.50 and 104.50. Yesterday the pair showed a growth by 2,31%. The resistance stands at 105.30, the support is seen at 104.50.

The indicators MACD and RSI kept heading north in the 4 hours chart. MACD is in the positive area. The histogram continued it growth that indicates buyers’ strength. RSI is in the overbought territory which strengthened the buyers’ positions.

The price broke the 50, 100 and 200 EMAs and headed further upwards in the 4 hours chart. The EMAs are turning upwards after the price.

Trading recommendations

Buyers still control the market. We are looking for the resistance 105.30 break and then continuation of a growth with a further target at 106.00.