14, March 2016

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

Reduced Large Manufacturing index had a negative impact on the yen. The index fell to -7.9% from the previous value of 3.8% (in the first quarter). Analysts had expected the index to rise to 4.2%. According to the Ministry of Finance the major Japanese manufacturers' sentiment sharply worsened in January-March when the economy had lost an impulse in the beginning of the year.

The first support resides at 113.00, the next is at 112.20. The first resistance stands at 113.80, the next one is at 114.60.

There is a confirmed and a weak sell signal. The price is in the Ichimoku Cloud. The Tenkan-sen and the Kijun-sen show a horizontal movement. 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

While the pair is in the Ichimoku cloud its future direction is not determined. If the pair breaks and consolidates below 111.40 the pair may go deep further. As an alternative scenario the pair breaks the level of 114.60 and keeps growing further.