28, July 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

Overview

The yen also fell against the dollar last week. The yen strengthening amid the Japanese stock market fall in the Asian session was interrupted on the European session. The dollars buying impulse for the yen was

given by the U.S. economic data indicated the labor market good trend and the renewed decrease in the U.S. "Treasuries" yields.

The break of 101.60 resistance enabled the buyers to revise the dollar upward to the next level, located at around of 102.23.

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 102.70. There is a confirmed and strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show an upward movement and form a “Golden cross”. The up ward movement will be until the price is above the Cloud.

The MACD indicator is in a positive territory. The price is going up.

Trading recommendations

Currently, the price is trading above the resistance level 101.60 which has already become the support. The approach to 102.23 may lead to the price rebound down. The potential rebound targets are the level of support 101.60, 101.00.