23, December 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The head of the Bank of Japan said that the inflation short-term risks are still preserved amid the oil market bearish trend. In this context, the pair dynamics will be determined by the US and Japan bond markets sentiment.

There was the sharp dollar growth from the support level of 117.00 against the Japanese yen. Buyers broke the resistance level of 119.20 amid the reduced volume and continued the upward movement.

The price is finding the first support at 119.20, the next one is at 118.00. The price is finding the first resistance at 120.40, the next one is at 121.60.

There is a confirmed and a strong buysignal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen shows a horizontal movement. the Kijun-sen shows an upward movement. The upward movement will be until the price is above the Cloud.

The MACD indicator is in a positive territory. The price is growing.

Trading recommendations

The potential decrease targets are the support levels: 118.00, 117.00.