22, July 2016

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The yen fell on the news that the Shinzō Abe may increase the quantity of the fiscal stimulus measures.

Current situation

The pair dipped into a negative territory. The USD/JPY left behind the levels 107.00 and 106.00 and approached 105.30. The pair lost about 0.98% during the course of the day. The resistance is at 106.00, the support comes in at 105.30.

MACD remained in the positive territory. MACD decreased which indicates the buyers’ positions weakening. RSI bounced from the overbought area which is a sell signal.

The instrument broke the 50-EMA and 100-EMA in the 1 hour chart. The moving averages (50, 100 and 200) are turning downwards.

Trading recommendations

The pair now seems to be heading towards its immediate support near 105.30. A break below the level would open the way to 104.50.