25, July 2016

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The yen weakened after Haruhiko Kuroda's speech (the BoJ governor). Haruhiko Kuroda denied speculations that Japan may be preparing "helicopter money" for economic stimulus.

Current situation

The short-term picture is quite mixed. The USD/JPY traded in a flat and went back and forth within a range 105.50 – 106.35. The resistance is at 107.00, the support comes in at 106.00.

MACD remained in the positive territory. MACD decreased which indicates the buyers’ positions weakening. RSI is in the neutral territory.

The instrument snapped the 100-EMA and bounced upwards above the 50-EMA in the 1 hour chart. The moving averages (50, 100 and 200) are turning downwards.

Trading recommendations

We may expect the consolidation around the level of 106.00.