22, February 2016

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

According to Mr. Kuroda the regulator is ready to reduce the negative interest rates and to increase the quantitative easing program to achieve the inflation target of 2%, if it is necessary. Thus, the Japanese financial authorities continued its verbal intervention in respect of its national currency, which is expensive for a sustainable economic growth.

The first support resides at 112.20, the next is at 111.40. The first resistance stands at 113.00, the next one is at 113.80.

There is a confirmed and a strong sell signal. The price is under the Ichimoku Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement forming a “Dead Cross”. 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

After the support level of 113.00 breakthrough down the way to the support 112.20 will be opened.