USD/JPY (a 4-hour chart)
The dollar strengthened across the board when the Fed official’s comments revived speculations over the possible rate hike in September.
The USD/JPY was in buy mode on Tuesday. The dollar erased losses which it suffered on Monday. Buyers were able to push the price towards 102.50. The instrument returned above the 50, 100 and 200 EMAs in the 4 hours chart. The moving averages are neutral. The resistance is at 102.50, the support comes in at 101.40.
MACD is negative. MACD decreased which confirms the strength of sellers.
RSI rebounded from the oversold area
Bulls’ nearest target remains the same – 102.50. After breaking the level the price may extend its growth towards 103.00 and further out to 103.50. In the scenario where sellers are back the price will break 101.40 and advance to 100.40.