21, May 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The dollar/yen also closed the trades on opening price, but the volatility on this instrument was more sweeping than in other major pairs. The Japanese currency strengthened against the dollar in the light of Japan stock market falling, and then we observed the yen selling, as the U.S. stock market figured slight optimism, and the 10-years “Treasuries”’ prices drop.

The support is 101.00. The first resistance is 101.60, the next is one 102.23.

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

The MACD indicator is in negative territory.

Trading recommendations

There is the four-days consolidation at the 101.35 support level with one false break. The potential bounce targets from 101.35 are two resistance levels - 102.25 and 102.65.