22, September 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The American dollar continues to strengthen against the Japanese yen without any correction kickbacks. And despite the fact that the overall USD majors correlation is now aimed at the dollar decline.

The support level of 108.50 was formed which will act as additional obstacle towards the possible price downwards correction.

The price is finding the support at 108.50, the next one is at 108.00. The price is finding the first resistance at 109.00, the next one is at 109.40.

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 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 growing.

Trading recommendations

The pair is going upwards. As long as the price is trading in the upward channel buyers remain strong. The bulls’ target is the level of 109.40.