15, August 2016

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The yen rose on Friday after disappointing U.S statistics: Retail Sales showed a flat and PPI decreased which rose concerns over the strength of the U.S economy.

Current situation

The yen strengthened in the market amid risk aversion. Bears have the ball now and pushed the pair below the 101.40 level. The resistance is at 101.40, the support comes in at 100.40.

MACD decreased which confirms the strength of sellers. RSI stayed close to the oversold area.

The instrument bounced from the 100-EMA which stands around the resistance 102.50 in the 4 hours chart. The price dropped and returned below the 50-EMA. The moving averages direction is downwards.

Trading recommendations

The loss of the 101.40 level will point to a further period of downside to come. A break below this mark risks a decline towards the support at 100.40.