20, October 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The Japanese yen was trading as the euro in the narrow corridor against the US dollar and finished the Friday trades with a decrease. The Bank of Japan Mr. Kuroda’s speech affected the pair movement who stated that the Japanese yen decrease was positive for Japan as well as the increased market yields treasuries.

The support level of 105.70 testing led to the short-term consolidation with the subsequent price growth. The intermediate growth target was the resistance level of 106.30. Having overcome this level, the pair tested the level of 106.70.

The price is finding the first support at 106.30, the next one is at 105.70. The price is finding the first resistance at 106.70, the next one is at 107.10.

There is a confirmed and a strong sell signal. The price is under the Cloud and it is above the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows 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 correcting.

Trading recommendations

The pair is correcting upwards now. The downward movement will be continued. The pair may go to 106.30, 105.70 soon.