17, June 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The other day the yen managed to preserve its achievements against the U.S. dollar and the euro as a result of the Central Bank of Japan statement.

The Bank of Japan again repeated its commitment to a steady increase in the size of its own program for the assets purchase, but kept the fund's assets total number without any changes at the level 70 trillion yen (almost $ 879 billion).

Also, the Central Bank of Japan expanded its bond buyback, starting with $ 40 trillion yen up to 45 trillion yen (almost $ 564 billion) although at the same time reduced the lending program, starting with the 30 trillion yen up to 25 trillion yen.

It should be noted that the Central Bank of Japan, using an anonymous vote, left the previously established interest rate without any changes in the range of 0-0.1 percent, and also reported on the outlook for moderate growth in the economy, even with the global environment uncertainty high degree.

The price is finding the first support at 101.60, the next one is at 101.00. The price is finding the first resistance at 102.23, the next one is at 102.70.

There is a confirmed and weak sell signal. The price is under the Cloud and it is under the Chinkou Span. The downtrend movement will be until the price is under the Kijun-Sen.

The MACD indicator is in negative territory.

Trading recommendations

The pair continues to decrease to the level 102.23 (minimum). Next, we expect the continued decrease development. The next goal is the level around 100.50.