15, October 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

After a ten year reduction the Japanese is going to rebound amid the US stock indices decline by 1.3% -1.6%, and the Nikkei225reduction by 1.45% and the producer price index fall for September by 3.5% y/y vs. 3 9% y / y in August. We expect the neutral retail sales data and strong industrial production ones and construction indicators on Thursday and on Friday. After these data the yen can rise up.

The pair USD/JPY is consolidating below the strong resistance level of 107.35 The short-term price consolidation below 107.35 is more likely to lead to a rebound and to the further price decline.

The price is finding the first support at 106.70, the next one is at 106.30. The price is finding the first resistance at 107.10, the next one is at 107.60.

There is a confirmed and a strong sell signal. The price is under the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a downward movement. 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 target for the price decline is the support level of 106.30.