20, August 2015

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The Japan and the US 10-years negative bond yields is a positive factor for the dollar as it increases the US assets attractiveness. In addition, we expected the US inflation growth compared with the previous month which will spur the two years Treasury securities growth and also may support the demand for the US dollar. Nevertheless the data came out less then the forecasted median and the dollar decreased against the yen.

For a long time the price has been consolidating below the resistance level of 124.30. The trading volumes are in the reduced area. By the end of the trades the price rebounded downwards.

The price is finding the first support at 124.30, the next one is at 123.50. The price is finding the first resistance at 125.50, the next one is at 127.00.

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

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

Trading recommendations

The potential decrease targets are two levels of support: 123.50, 122.40.