23, September 2015

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The US and Japan important macroeconomic statistics were not published. The Japan financial markets have been closed for the second consecutive trading day. We can analyze only the US Treasury bond yields in this situation which increased by 6 basis points to the level of 2.21%. The moderately positive sentiment in the world leading stock markets signaled the carry trade transactions growth which is a negative factor for the yen as a funding currency.

There was bearish sentiment predominance. The pair fell below the level of 120.40 and consolidated.

The price is finding the first support at 119.20, the next one is 118.40. The price is finding the first resistance at 120.40, the next one is 121.60.

The price is in the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement and form a “Golden Cross”.

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

Trading recommendations

We advise to consider short positions with the first target – 119.20. After fixing below the first target, the level of 118.40 will become the next one.