16, May 2016

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

Service sector activity in Japan fell more than expected last month. Tertiary Industry Index (seasonally corrected) showed -0,7% compared with -0,1% in the previous month. Experts expected a decline to -0,2%.

The price is finding the first support at 108.20, the next one is at 107.40. The price is finding the first resistance at 109.00, the next one is at 109.80.

The price is in the Ichimoku Cloud and it is above the Chinkou Span. The Tenkan-sen shows a horizontal movement and the Kijun-sen shows an upward movement.

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

Trading recommendations

The downward movement will be continued. The pair may go to 108.20 soon. Having overcome the first target the price might go downwards to 107.40.