23, June 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The Japanese currency traded against the dollar in a sideways range and closed at opening price. At the beginning of the last session the yen strengthened amid the traders’ displeasure with the Fed position, and it fell by the session end, obviously because of the positive emotions caused by the U.S. economic statistics presented at the American session.

Throughout the last trading week the sellers failed to break below 101.75 support level above which it continues the trading in the real time.

The price went up to the level 101.75 at the lower volumes, but there is a breakthrough rising trend line 101.90.

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 102.70.

The price is in the Cloud and it is above the Chinkou Span. The upward movement will be until the price is above the Kijun-Sen.

The MACD indicator is in a neutral territory.

Trading recommendations

The false support level of 101.75 retest can correct the price upwards in the short term. The potential correction target is the mark of 102.00.