29, July 2016

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The yen strengthened against the dollar before the BoJ meeting on Friday. The market expected the regulator will soften its policy.

Current situation

The pair was in a flat close to the level 104.50 during the day. The price resumed its growth at the American session and reached the level 105.30. The resistance is at 105.30, the support comes in at 104.50.

The indicators MACD and RSI still generate sell signal.

The instrument grew from the 100-EMA in the 4 hours chart. The price broke the 50 and 200 EMAs on its way. The USD/JPY closed the day above the moving averages which are neutral.

Trading recommendations

We believe the growth will be continued now. The first target is the level 105.30. We do not exclude the falls to 103.50.