20, July 2016

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The dollar became cheaper against the yen as investors began profit raking after the recent rally.

Current situation

The pair traded at fresh 4-week highs near the mark 106.50 on Tuesday. Out technical outlook is bullish. The resistance is at 107.00, the support comes in at 106.00.

MACD remained in the positive territory, however, its histogram decreased which indicates the buyers’ positions weakening. RSI is close to the overbought area which is a buy signal.

The price remained above the 50-EMA in the 1 hour chart. The moving averages (50, 100 and 200) are still moving upwards which is a buy signal.

Trading recommendations

A solid 106.00 break will signal about a move towards 107.00. Conversely, the USD/JPY may fall back to 104.50.