16, April 2015

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

Traders close long positions within the US dollar as the dollar index basket (USDX) suits to the psychological level of 100.00 which is a bearish factor. On the other hand, bulls in the US stock market redeem the quotations decline, increasing long positions at the attractive levels that can support the demand for the pair dollar/yen.

The price is finding the first support at 118.30, the next one is at 117.50. The price is finding the first resistance at 119.20, the next one is at 120.40.

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 horizontal movement and form a “Dead Cross”. 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

After the level of 118.30 breakthrough down the way to the support 117.50 will be opened.