25, August 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The Japanese yen continued its decline against the dollar, but like the pound weakened only slightly. The yen gave a boost growth in the Japanese stock market, but this movement is not get development.

The two-day consolidation below the resistance level of 104.00 in the short term lead to the corrective decline rates formation.

The price is finding the first support at 103.70, the next one is at 103.30. The price is finding the first resistance at 104.00, the next one is at 104.35.

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 fixing.

Trading recommendations

We suppose the pair will go to 104.00 first. Having overcome the first target the price might go upwards to 104.35. Still the pair is overbought and we do not exclude a short term correction downwards.