19, September 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The yen continued to fall against the dollar. According to the FOMC meeting results that made us clear that the economy is growing at a moderate rate and the inflation is below the target level.

The asset purchase program has been reduced to $15 billion and apparently it will be completed in October this year. The basic interest rate remained at level of 0.25%. We can observe the price increase without any signal to a correction.

The price is finding the support at 107.10, the next one is at 106.70. The price is finding the first resistance at 107.60, the next one is at 108.00.

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 and the Kijun-sen show 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 growing.

Trading recommendations

The potential growth target is the resistance level of 109.00.