24, March 2016

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The Bank of Japan will be replenished with supporters of negative interest rates. Makoto Sakurai, who supports the negative interest rates, was elected as a new member of the Board of Directors on Wednesday. This is likely to change the balance in favor of the Haruhiko Kuroda. Unlike his predecessor, Sakurai sees negative interest rates as a powerful tool to support lending.

The first support resides at 112.20, the next is at 111.40. The first resistance stands at 113.00, the next one is at 113.80.

The price is in the Ichimoku Cloud and it is under the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a horizontal movement forming a “Golden Cross”.

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

Trading recommendations

The pair can grow to the resistance level of 113.00. After breaking 113.00 the buyers may go to 113.80. If the price falls it will get to 112.20 and 111.40.