30, July 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The Japanese currency was no exception and also like other majors started to move against the dollar. The stock market activity and the U.S. debt market government gave some strength to keep growing.

Moreover the pair got some drive from the traders’ expectations regarding the USA important events that upcoming this week. The break higher the strong support level of 101.60 was the signal for the rising trend continuation. The bounce from 101.60 level has led to the 102.23 downward trend line breakout.

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 an upward 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 going up.

Trading recommendations

Despite the fact that the news had virtually no impact on volumes the 102.23 descending trend line breakout up in further perspective opens the way to the resistance level of 102.70.