24, June 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

All the last week, the dollar/yen pair was traded under the U.S. government debt influence, as well as the messages from the Fed's decisions on monetary policy. This provoked multidirectional activity in a rather narrow sideways range. The BoJ head Kuroda confirmed the readiness without hesitation to correct the policy if the inflation returns to earlier levels.

The price is finding the first support at 101.60, the next one is at 101.00. The price is finding the first resistance at 102.23, the next one is at 102.70. There is a weak and non-confirmed sell signal. The price is under the Cloud and it is above the Chinkou Span. The downward movement will be until the price is under the Kijun-Sen. The MACD indicator is in a neutral territory.

Trading recommendations

For the third time in the last three months, the buyers can approach the level of 102.65. If the approach occurs on the declining volume, it is likely to bounce down. The bounce potential target is the strong support level of 101.35.