23, May 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The Japanese currency strengthened against the dollar at first and then fell, and as a result, ended the trading with small losses. The interest to the yen grew after the Bank of Japan decided not to change its policy, and its head Mr. Kuroda made some statements that as the current mitigation program brings the desired results, the Bank has no intentions to expand the program in the near future.

The price is finding the first support at 101.60, the next one is at 101.00. The price is finding the first resistance at 102.23, the next one is at 103.00.

There is a confirmed and weak sell signal. The price is under the Cloud and it is under the Chinkou Span. The uptrend movement will be until the price is above the Kijun-Sen.

The MACD indicator is in neutral territory.

Trading recommendations

The downward trendline 101.85 - 101.90 located on the upward trend way which is the downtrend channel upper bound. The downward trend line retest is more likely to lead to the strong price support level 101.35 return.

How strong the support 101.35 is will depend on the next price movement.