16, February 2016

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

Weak Japanese GDP put pressure on the yen. The strong yen had a negative impact on the Japanese exports. That fact can make the monetary authorities take additional measures.

The first support resides at 113.80, the next is at 113.00. The first resistance stands at 114.60, the next one is at 115.40.

There is a confirmed and a strong sell signal. The price is under the Ichimoku Cloud and it is under the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a horizontal movement forming a “Golden Cross”. The downward movement will be until the price is under the Cloud.

The MACD indicator is in a negative territory. The price is correcting.

Trading recommendations

The approach to the level of 114.60 may lead to a price rebound down. The potential rebound targets are the support levels of 113.80, 113.00.