20, February 2015

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The summarizing event was the US bank minutes announcement. The "minutes" soft tone provoked the dollar sales and then the yen has strengthened.

Previously, pressure on the pair came from the Kuroda’s statements, the Bank of Japan governor, who excluded additional monetary policy easing measures in the short term, but the Japan stock market growth supported the pair.

The US dollar slight decrease led to the prices decline to the level of 118.60. Then the pair grew and tested the mark of 119.20.

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 and the Kijun-sen show a horizontal movement and form a “Golden Cross”.

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

Trading recommendations

The downward movement will be continued. The pair may go to 118.15, 117.15 soon.