19, February 2015

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The Bank of Japan monetary policy decision was in the center of our attention on Wednesday. The central bank governor Mr. Kuroda said that there were no reasons to think about the additional mitigating measures. The pair is supported by the yen weakened attractiveness as a safe haven.

The two day consolidation around 118.60 was followed by the price rebound upwards. The pair rose to the resistance level of 119.20. The trading volumes are in the downgrade zone.

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.

The price is in the Cloud and it is above the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a downward movement, and form a “Golden Cross”.

The MACD indicator is in a neutral territory. The price is falling.

Trading recommendations

We suppose the pair will go to 118.00 first. Having overcome the first target the price might go downwards to 117.00.