20, June 2016

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The lack of new steps in the monetary policy softening by the Bank of Japan supported the demand for the yen.

Current situation

The pair remained in a downside channel. The dollar is under pressure. The new local low is at 103.96. The resistance is at 104.50, the support is at 103.50.

MACD decreased, there was a sell signal from the indicator. RSI is in the oversold area. If RSI remains in the oversold area we will get another sell signal. The pair USD/JPY is below the Moving Averages (50, 100 and 200) on the 4 hour chart. The Moving Averages are moving downwards.

Trading recommendations

The pair is still under pressure. We expect its further decline towards 103.50.