15, May 2015

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

Despite the bullish sentiment predominance on the world leading stock exchanges as well as the carry trade transactions growth within the pair AUD/JPY – the Japanese yen is in demand within the context of the US dollar sales. The Japan and the US bond yields reduction will support the demand for the Japanese yen.

Having not reached the last week maximum of 120.40, the upward trend reversed sharply downwards, breaking through the support level of 119.20. We observed the consolidation at this level.

The price is finding the first support at 118.30, the next one is at 117.50. The price is finding the first resistance at 119.20, the next one is at 120.40.

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 shows a downward movement and the Kijun-sen shows a horizontal 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 consolidating.

Trading recommendations

The potential growth target is the resistance level of 120.40.