16, December 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The main event of the day will be the activity index data publication in the Tankan large manufacturers sector for the 4th quarter. The Japanese yen devaluation by 9.26% in the third quarter is also a positive factor for exporters.

The pair USD/JPY is testing the support level of 118.00.

The price is finding the first support at 118.00, the next one is at 117.00. The price is finding the first resistance at 119.20, the next one is at 120.40.

There is a confirmed and a strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen shows a horizontal movement and the Kijun-sen shows a downward movement. The downward movement will be until the price is under the Cloud.

The MACD indicator is in a negative territory. The price is decreasing.

Trading recommendations

We expect the 117.00 line break that will open the way to 117.00, further then towards 115.80.