13, November 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The Japanese yen fell against the dollar on the yesterday trades. The Japan stock market events where the Nikkei grew by 2% and then the rumors that the next Japan sales tax increase may be postponed to the later date put some pressure on the yen.

At the beginning of the week buyers were able to break through and consolidate above the resistance level of 114.60. The level breakthrough was amid the low volumes and led to a consolidation.

The price is finding the first support at 114.60, the next one is at 113.50. The price is finding the first resistance at 115.80, the next one is at 117.00.

There is a confirmed and a strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a horizontal movement and form a “Golden Cross”. The upward movement will be until the price is above the Cloud.

The MACD indicator is in a positive territory. The price is increasing.

Trading recommendations

The potential growth target is the resistance level of 117.00.