22, July 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

Overview

The Japanese currency declined against the dollar and returned most of the positions won in the previous session, when it was reported about the hit airliner on the border between Russia and Ukraine. It is

possible that one of the moments that were supporting the dollar was the fact of the Japanese importers buying at attractive levels for this to which the pair dropped and the others - the profitability States’ "Treasuries" renewed growth. More than six months, the dollar/yen has been fixing above the strong support level of 101.00.

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

There is a confirmed and strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement and form 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 correcting.

Trading recommendations

The price is likely to go to the upward trend line 102.23.