22, September 2016

USD/JPY (a 4-hour chart)

General overview

The dollar strengthened despite the BoJ decision to keep the rates unchanged.

Current situation

The USD/JPY traded mixed on Wednesday. The price fell below 101.15 and then sharply rallied in the Asian session. The pair jumped towards the level 102.50 where it suffered a short lived downward movement. The price is struggling with the 101.40 level now. The USD/JPY remained below the 50, 100 and 200 EMAs in the 4 hours chart. The moving averages show a moderately bearish slope. The resistance is at 101.40, the support comes in at 100.40.

MACD is negative which confirms the strength of sellers. RSI is in the oversold territory.

Trading recommendations

If the USD/JPY breaks the support 100.40 that should send this market looking for the 100.00 level. Otherwise, the price will grow towards 102.50 and 103.00.