28, October 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The yen rose for the first time for seven days on Friday against the US dollar after the reports that New York's physician was hospitalized with the Ebola diagnosis. The messages about the deadly disease in the US largest city provoked the safe assets demand growth.

The US dollar growth against the Japanese yen has stopped above the resistance level of 108.00 and then the pair fell.

The price is finding the first support at 107.60, the next one is at 107.10. The price is finding the resistance at 108.50.

There is a confirmed and a strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows an upward movement. The upward movement will be until the price is above the Cloud.

The MACD indicator is in a positive territory. The price is correcting.

Trading recommendations

We expect the 107.10 line break that will open the way to 108.00, further then towards 108.50.