24, October 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The Japanese yen also fell against the dollar yesterday. The US information about consumer inflation was the main factor influencing the pair USD/JPY. Before this report publication the trades were in a narrow side range, and after the report publication the yen was in the sales wave and fixed its losses at the end of the trading day.

The buyers came to the strong resistance level of 108.00 at the low volumes that has earlier bounced the price down. The consolidation below the strong resistance can cause a slight price decrease in the short term.

The price is finding the first support at 107.10, the next one is at 106.70. The price is finding the first resistance at 107.60, the next one is at 108.00.

There is a confirmed and a strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show 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 increasing.

Trading recommendations

The price is likely to go to the downward trend line 107.10. The potential growth target is the resistance level of 108.50.