19, November 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The dollar is stable near the seven-year highs against the yen amid the growing expectations that the Japanese Prime Minister Shinzo Abe will announce the early elections and will postpone the planned sales tax rise, the next day when the data showed that the economy turned towards recession.

The Japan's economy contracted in the third quarter by the year-on-year 1.6% in comparison with the growth forecast by 2.5%.

The price is finding the first support at 115.80, the next one is at 114.60. The price is finding the resistance at 117.00.

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 117.00.