18, October 2016

USD/JPY (a 4-hour chart)

General overview

The USD/JPY pair preserved its bid tone after the positive US retail sales report which pointed that the Fed is moving closer to raise the rates before the end of the year.

Current situation

The dollar/yen remained in an upward channel on Monday. The price moved away from the upper limit of the cannel and is struggling with the 104.00 support to go decline further. The dollar quotes approached the bullish 50-EMA in the 1 hour chart. The 50-EMA provides a solid support for the price. All moving averages are pointing higher. The resistance can be found at 105.00, the support comes in at 104.00.

MACD is in the positive area. The histogram remained at the same level which indicates the buyers’ strength. RSI is within the overbought area.

Trading recommendations

After breaking the 104.00 support the price will keep advancing south towards the mark 103.30. A bounce off the level will extend its gains toward the last week high at 104.61.