22, August 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The American dollar strengthened significantly against the Japanese yen. The growth rates came to the historical resistance level of 104.00, from which  there the rates have been rebounded down by 300 points four months. The price went up at lower volumes to the resistance level of 104.00. Apparently, the price consolidation will be continued. The retest is expected in a short term.

The price is finding the first support at 103.70, the next one is at 103.30. The price is finding the resistance at 104.00.

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 an upward movement and the Kijun-sen shows a horisontal movement. The upward movement will be until the price is above the Cloud.

The MACD indicator is in a positive territory. The histogram is growing.

Trading recommendations

The potential growth target is the resistance level of 104.00. We expect a consolidation now.