24, October 2016

USD/JPY (a 4-hour chart)

General overview

According to Haruhiko Kuroda (the BoJ Governor) the regulator may extend timing for reaching its inflation target.

Current situation

The USD/JPY pair turned negative after opening on Friday. After two-day recovery the price reached the level 104.00. Buyers were unable to retake the level, the price turned around and got under selling pressure. The pair traded around 103.75 Post-European open. The USD/JPY hovered over the moving averages in the 1 hours chart. The prices touched the 50-EMA which rejected them upwards. The 50-EMA provided a temporally support for the dollar. The moving averages are moderately bullish in the same chart. The resistance can be found at 104.00, the support comes in at 103.00.

MACD indicator is at the centerline. If the histogram enters the negative territory, that will indicate sellers’ growing strength. If MACD returns into the positive area the buyers will take control over the market. RSI left the overbought area and headed downwards.

Trading recommendations

If the bearish scenario prevails the USD/JPY pair will face additional selling pressure. Sellers will lead the price towards 103.50 first. After breaking the mark the pair will move to 103.00.