16, September 2016

USD/JPY (a 4-hour chart)

General overview

The yen slightly strengthened on the back of the weaker U.S. statistics. Besides, traders preferred safe assets ahead of the BoJ and the Fed’s meeting the next week.

Current situation

After a brief consolidation during the Asian session the price suffered a short lived downward movement. Sellers were able to push the price lower the level 102.50. The price found a descent support at the mark 102.00 where the daily moving averages stand. The moving averages 50, 100 and 200 are neutral. The price is still struggling with the moving averages to decline further. The resistance is at 102.50, the support comes in at 101.40.

MACD indicator is at the centerline. If the histogram enters the negative territory, that will indicate sellers’ growing strength. If MACD returns into the positive area the buyers will take control over the market. RSI is neutral.

Trading recommendations

We believe the growth will be continued now. The first target is the level 102.50. However, we do not exclude the falls to 101.40.