16, January 2015

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

On the one hand, the US negative macroeconomic statistics will support the Japanese yen. On the other hand, the current levels already look attractive for opening long positions, based on the long-term upward trend continuation.

The pair USD/JPY rebounded from the strong resistance level of 118.00 downwards. The pair broke through the support level of 117.00.

The price is finding the first support at 115.80. The price is finding the first resistance at 118.00, the next one is at 119.20.

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 horizontal movement and the Kijun-sen shows 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 approach to the level of 115.80 may lead to a price consolidation.