29, April 2016

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The yen grew when the Bank of Japan did not change the interest rates, as expected. The regulator decided not to apply any further negative interest rates. Industrial Production for March rose by 3.6% on monthly basis, while we expected a growth by 2.9%. Retail Sales fell by 1.1% year on year, although a drop of 1.5 % was expected.

The price is finding the first support at 108.20, the next one is at 107.40. The price is finding the first resistance at 109.00, the next one is at 109.80.

There is a confirmed and a strong sell signal. The price is under the Ichimoku Cloud and it is under the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows a horizontal movement. The downward movement will be until the price is under the Cloud.

The MACD indicator is in a negative territory. The price is decreasing.

Trading recommendations

If the price fixates below the support 107.40, it may continue the downward trend in the short term. The potential target is 106.60.