16, May 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The Japanese currency was in the buying wave on yesterday's trading. The U.S. "Treasuries" yield drop and the U.S. stock markets shares quotations reduction drove investors to the Safe Haven Currency. In addition, the yen interest could be supported by Japan Bank reports, which declared the confidence that the consumer price index (CPI) will gradually rise in the coming months, and inflation will be above the 1% level.

The first support is 101.60, the next one is 101.00. The first resistance is 102.23, the next is one 103.00.

The price is in the Cloud and it is above the Chinkou Span.

The downtrend movement will be until the price is under the Kijun-Sen.

The MACD indicator is in neutral territory.

Trading recommendations

The "bear" inability to break below 101.60 could inspire the "bulls" for more active pair buying, what will give reason to talk about the base formation and the uptrend resumption. However, while the pair trades below 102.36, the downward correction will remain in force.