20, March 2015

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The US stock market responded positively to the FOMC meeting results. The Fed does not rush to tighten monetary policy and bulls once again rushed to the stock market. Institutional investors will continue to be funded with the cheap yen which will put pressure on the Japanese currency. The US payments balance negative release will freeze the bulls’ enthusiasm for a time. However, the pair grew again.

The price is finding the first support at 120.40, the next one is at 119.20. The price is finding the first resistance at 121.60, the next one is at 122.40.

The price is in the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a downward movement.

The MACD indicator is in a negative territory. The price is correcting.

Trading recommendations

The pair can grow to the resistance level of 121.60. After breaking 1.3665 the buyers may go to 122.40.