29, August 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

The yen did not continue to rise against the dollar. There is the optimism fall in the Japan stock market where the Nikkei was dropped by 0.5%.

The second approach to the resistance level of 104.20 was fallowed by the price bounce down. Against the background of the low volumes the American dollar corrected down against the Japanese yen.

The price is finding the first support at 103.70, the next one is at 103.30. The price is finding the first resistance at 104.00, the next one is at 104.35.

There is a confirmed and a weak 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 a horizontal movement and form a “Dead Cross”. 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

The potential rebound target are the support levels of 104.00 and 104.35.