25, April 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The Japanese currency as the euro was indefinably trading versus the dollar and closed with a slight advantage near the opening prices. The growth in the Japan’s stock market provoked a rise in risk appetites and the yen grew up versus the “greenback” in the Asian and European sessions. We believe the growth was due to geopolitical tensions in Europe, forcing the investors to return to shelters.

The buyers briefly managed to hold above the 102.50 level. The reverse breakdown level down led to the U.S. dollar short-term decline versus the Japanese yen.

The support is 102.23. The fist resistance is 103.00, the next is one 103.80.

The MACD histogram is decreasing.

Trading Recommendations

The rebound from the channel top 102.70 is likely to be accompanied by the price lowering to the levels 101.90 - 102.00. We should expect the reversal rise up to the resistance level 102.50 in the future.