13, October 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The trades were in the context of the dollar rise for the most major currency pairs. However, this correlation was ignored by the Japanese yen which gradually leads to the position recovery after the long decrease.

The stock markets’ falling optimism and the neutral situation in the US national debts market resulted in the investors’ return to the Japanese yen.

The key support level of 108.00 was broken through. In this case, the current trade is in the descending channel direction. It should also be noted that the trading volumes are at the high levels.

The price is finding the first support at 107.60, the next one is at 107.10. The price is finding the first resistance at 108.00, the next one is at 108.50.

There is a confirmed and a strong sell signal. The price is under the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a downward movement. The downward movement will be until the price is under the Cloud.

The MACD indicator is in a negative territory. The price is consolidating.

Trading recommendations

If the price fixates below the support 107.10, it may continue the downward trend in the short term. The potential target is 106.70.