25, June 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The yesterday’s trading ended with a growth, the cause of which probably was the performance of the Bank of Japan governor Mr. Kuroda, who said that inflation could stall the summer, but then resume its growth in the direction of 2.0%.

There is a symmetrical triangle at the 4-hour chart and the pair is being traded in it. Its boundaries are downward trend line 102.05 and the lower boundary is a line 101.85 from which there is a short-term bounce upward.

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. The price is in 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

We expect the 102.05 line break that will open the way for the buyers to 102.25, further then towards 102.70.