23, July 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

Overview

The Japanese yen is not an exception like the euro it is traded in a narrow range and closed the day with small losses against the dollar. The statistics has published the activity data - the activity index rose in May by 0.6% m/m vs. -4.6% m/m

previously in all economy sectors, but this fact had no impact on the market - the yen fell slightly against the dollar. The stock market and the U.S. market government bonds as usually influence the pair. The USD/JPY corrective gains fell to the downward trend line 101.60.

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

There is a confirmed and weak sell signal. The price is under the Cloud and it is under 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.

Trading recommendations

The volumes which gave the pair a chance to go up to the 101.60 trendline have formed a divergence. The level of 101.60 breakthrough, where the trading is being continued now, opens the way to the level of 102.23.