20, June 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The traders did not like the Fed data. The dollar returned under the pressure and recorded losses on the day. The sharp the U.S. "Treasuries" yield falling pushed investors to the dollar selling, which rose and returned all the previous session losses on the meeting outcome of the American Central Bank.

The bounce from the resistance level 102.30 was accompanied with the U.S. dollar decrease against the Japanese yen to 101.85 uptrend line. The sellers approached the trendline on the strong volumes which in the long term can lead to a breakthrough and a downward trend continuation.

The price is finding the first support at 101.60, the next one is at 101.00. The price is finding the first resistance at 102.23, the next one is at 102.70.

There is a non-confirmed and weak sell signal. The price is under the Cloud and it is under the Chinkou Span. The downward movement will be until the price is under the Kijun-Sen.

The MACD indicator is in neutral territory.

Trading recommendations

After the trend line 101.85 breakthrough down the way to the support 101.50 will be opened.