16, August 2016

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The yen slightly weakened on the back of the softer than expected GDP data of Q2.

Current situation

The dollar slightly recovered on Monday, however, we preserve a bearish outlook. The USD/JPY remained below 101.40 by the end of the trades. The resistance is at 101.40, the support comes in at 100.40.

MACD decreased which confirms the strength of sellers. RSI is neutral.

The price remained below the 50-EMA which extended lower. The 50-EMA acts as a resistance for the pair. The moving averages (50, 100 and 200) direction is downwards.

Trading recommendations

The overall outlook remains bearish, for a fall towards 100.40 support area.