22, October 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The Japanese yen fell amid the increasing risk appetite in view of the US stock market optimism and the yield "Treasuries." slight increase. The political invariability of the Japanese regulator, aiming at achieving the inflation target of 2% could support the dollar.

Buyers were able to break through above the downward trend line of 106.70. The trend breakthrough was amid the low volumes and at the same time it was the signal to change the downward trend.

The price is finding the first support at 106.30, the next one is at 105.70. The price is finding the first resistance at 106.70, the next one is at 107.10.

There is a confirmed and a strong sell signal. The price is under the Cloud and it is above the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a horizontal movement and form a “Golden Cross”. The downward movement will be until the price is under the Cloud.

The MACD indicator is in a neutral territory. The price is decreasing.

Trading recommendations

The trend goes downward. We expect the level of 106.30 testing soon.