26, May 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The Japanese stock market positive dynamics and strong Chinese data and manufacturing activity indicator rising in May supported the yen sales against the dollar. The dollar was able to maintain the buying impulse and thanks to the latest data that showed the positive results.

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 103.00.

There is a non-confirmed and weak buy signal. The price is above the Cloud and it is above the Chinkou Span. The uptrend movement will be until the price is above the Kijun-Sen.

The MACD indicator is in neutral territory.

Trading recommendations

A bounce down is possible. The potential bounce target is the level 101.35. If sellers can break through that support the price can be lowered to 100.40.