14, January 2015

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

Japan will publish the payment balance. In November the Bank of Japan reported the foreign exchange reserves increase that indicates the surplus growth. Also this month there was a strong inflow of foreign investment into the stock market that also points to the positive data output.

After the upper trend line 119.20 break the two downward channels on the daily chart were formed.

The price is finding the first support at 117.00, the next one is at 115.80. The price is finding the first resistance at 118.00, the next one is at 119.20.

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

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

Trading recommendations

If the price fixates below the support 118.00, it may continue the downward trend in the short term. The potential target is 117.00.