26, February 2016

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The pair tried to develop an upward correction after Kuroda's statements. The Bank Governor hinted that they might expand the QQE program. Japan relies on exports, so it needs a weak Yen to survive.

The first support resides at 112.20, the next is at 111.40. The first resistance stands at 113.00, the next one is at 113.80.

There is a confirmed and a strong sell signal. The price is under the Ichimoku Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement. The downward movement will be until the price is under the Cloud.

The MACD indicator is in a negative territory. The price is correcting.

Trading recommendations

If the price fixates above the resistance 113.00, it may continue the upward trend in the short term. The potential target is 113.80.