26, October 2015

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The Japanese yen fell against the dollar last Thursday. The Mario Draghi statements had an impact on this pair, the ECB further stimulating prospects have improved the risk appetite. The pair is likely to continue bullish movement still the strong technical resistance levels which the pair has reached can stop its growth for a while.

The price is finding the first support at 120.40, the next one is 119.20. The resistance is at 121.60, the next one is at 122.40.

There is a strong and confirmed buy signal; the pair is above the Cloud. The Tenkan-sen is crossing the Kijun-sen upwards. Two lines give us a “Golden Cross” signal. If the USD/JPY remains above the Cloud the growth will be continued.

The MACD indicator is in a positive territory now. The histogram is growing.

Trading recommendations

If the pair stays above the Cloud it has all chances to go to the level of 121.60.