17, September 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The yen is still under some pressure in the run-up to the next FOMC meeting beginning; its results will help to determine the world's largest economy statement.

The Economic Cooperation Organization and Development has lowered the world's largest economies growth forecasts. The GDP growth will be 2.1% against the prior forecast 2.6% this year in the US.

The USD/JPY growth was stopped by the resistance level of 107.10. The correction dollar decrease is observed against the Japanese yen.

The price is finding the support at 107.10, the next one is at 106.70. The price is finding the resistance at 107.60.

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 downward movement and the Kijun-sen shows an upward movement. The upward movement will be until the price is above the Cloud. The Cloud is directed upwards.

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

Trading recommendations

The approach to the level of 106.70 may lead to a price rebound upwards. The potential rebound target is the resistance level of 107.80.