21, November 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The US dollar has reached the seven year high against the yen as the Federal Reserve last meeting minutes showed that the United States was going to increase interest rates while Japan is prone to stimulate its economy.

Despite the fact that the trading volumes show the upward trend easing, there is a bearish sentiment in the market.

The buyers has broken through the upper bound of the rising channel at the level of 118.00.

The price is finding the first support at 118.00, the next one is at 117.00. The price is finding the first resistance at 119.20.

There is a confirmed and a strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows a horizontal movement. The upward movement will be until the price is above the Cloud.

The MACD indicator is in a positive territory. The price is correcting.

Trading recommendations

The potential growth target is the resistance levels of 119.20.