29, July 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

Overview

The Japanese yen was under pressure from the dollar. The Japan stock market optimism which raised the Nikkei on 1.13% supported the pair, but the final result was less impressive - the pair fell and closed the trading day with only a slight increase. The last week short-break turned out to be a false one. The buyers managed to lift the price above of 101.60 once again The U.S. dollar corrective strength against the Japanese yen was met by the downward linear trend 102.23. The trend line is quite strong, it has been touched three times and has never been broken.

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 ahorizontal movement and form a “Golden cross”. The upward movement will be until the price is above the Cloud.

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

Trading recommendation

The downward movement will be continued. The pair may go to 101.00 soon.