23, December 2015

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The US secondary market housing sales data can make a pleasant surprise. The November mortgage lending growth was 1.26% compared to the previous month that indicates the real estate sales increase, both primary and secondary markets. However the data came out less then forecasted median: 4,76M against 5,35M.

The first support resides at 120.40, the next one is 119.20. The first resistance stands at 121.30, the next one is at 122.40.

There is a confirmed and a strong sell signal. The price is under the Cloud and it is above the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows a horizontal movement, and form a “Dead Cross”. The downward movement will be until the price is under the Cloud.

The MACD indicator is in a negative territory. The price is decreasing.

Trading recommendations

We believe the consolidation between the levels of 120.40 and 121.30 will be continued now. Then we expect the level of 119.20 testing soon.