16, July 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The Japanese currency fell against the dollar. The initial buying support was followed by the Japan stock market optimism - the Nikkei index rose by 0.9%. The further interest to the yen as a funding currency could support the U.S. government debt market grown yield, which decreased the "Treasuries" price. In addition, the yen weakening could occur amid the BoJ meeting results expectations. The Japanese regulator made any changes in its monetary policy and slightly lowered the economic growth forecast.

The price is finding the support 101.00. The price is finding the first resistance at 101.60, the next one is at 102.23.

There is a confirmed and weak sell signal. The price is under the Cloud and it is above the Chinkou Span. The Tenkan-sen shows an upward movement, and the Kijun-sen – horizontal and form a “Dead cross”. The downward movement will be until the price is under the Cloud.

The MACD indicator is in a neutral territory.

Trading recommendations

After the trend line 101.60 break up the way to the level 102.23 is opened.