26, March 2015

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The US macroeconomic statistics will not be able to please traders with strong data which is a negative factor for the dollar. The day before there has been the lack of investors' risk appetite which traditionally causes demand for the Japanese yen as traders close their positions within the carry trade.

The price is finding the first support at 119.20, the next one is at 118.00. The price is finding the first resistance at 120.40, the next one is at 121.60.

There is a confirmed and a strong sell signal. The price is under the 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 decreasing.

Trading recommendations

The approach to the level of 119.20 may lead to a price rebound upwards. The potential rebound target is the resistance level of 120.40.