17, July 2015

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

We do not believe in strong yen sales now. The Bank of Japan lowered its inflation forecast for the financial years 2015-2017 and in this regard the Japanese yen looks rather vulnerable now.

Buyers have failed to break through and gain stay above the strong resistance level of 123.50 for the third time. The level breakthrough comes amid low volumes. Currently, the price is consolidating above 123.50 which already plays a strong supporting role.

The price is finding the first support at 123.50, the next one is at 122.40. The price is finding the first resistance at 124.30, the next one is at 125.50.

There is a confirmed and a strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen shows a horizontal movement and the Kijun-sen shows an upward movement. The upward movement will be until the price is above the Cloud.

The MACD indicator is in a positive territory. The price is consolidating.

Trading recommendations

The potential growth targets are the resistance levels: 124.30, 125.50.