28, March 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The U.S. dollar traded steadily versus the Japanese yen during the Asian session, but by the end of the trading it went down and recorded losses on the day. Perhaps the market drew attention to the sharp drop in profitability of the U.S. Treasuries, which is reflected in the level of a risk appetite.

The support is 101.60, and the resistance is 103.00.

The pair is growing. Kijun-sen and Tenkan-sen are horizontal. The northern movement is weak as the pair is in the Cloud. The Cloud is neutral. The northern movement remains until Kijun-Sen is below the price.

MACD is still in a positive area, but below its signal line. The indicator is gradually declining sending a sell signal.

Trading recommendations

If the price cannot get out of the downward channel today, we should expect the second support level 101.60 retest. The break of this level will open the way down to 101.00.