15, December 2015

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The Bank of China intention to weaken the yuan binding to the dollar pressured the yen. In addition, the Japanese GDP became the recent driver for the yen when the report did not confirm the country technical recession.

The first support resides at 120.40, the next one is 119.20. The first resistance stands at 121.30, the next one is at 122.40.

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 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 decreasing.

Trading recommendations

The potential increase targets are two levels of resistance: 121.30 and 122.40.