13, August 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The Japanese yen fell slightly against the dollar. The pair found the support in the optimism returning to the Japan stock market, amid the geopolitical tensions easing - Nikkei rose 2.4%.

If we talk about the prospects the yen will continue to depend on the risk appetite and this parameter is highly variable in the current environment, so there is a high Japanese currency renewed growth probability.

At this time buyers temporarily broke above the previous month high - the resistance level of 102.25. But due to the fact on what volumes this breakthrough has been formed the further upward movement continuation will be rather difficult.

The price is finding the first support at 102.23, the next one is at 101.60. The price is finding the first resistance at 102.60, the next one is at 102.60.

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 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 growing.

Trading recommendations

The downward trend line 102.40 located on the buyer's way which will be the strong resistance on today's trading session. The trend line retest is more likely to lead to the price bounce downward. The potential bounce target is the level of support 101.60