30, August 2016

USD/JPY (a 4-hour chart)

General overview

The dollar grew to the 2-week high on the back of the renewed hopes that the Fed might raise the rates in September. Japanese stocks supported the dollar as well.

Current situation

The USD/JPY gapped higher and extended its gains on Monday. The pair found a solid resistance at 102.50 which did not let the price further upwards. The resistance is at 102.50, the support comes in at 101.40.

MACD is in the positive area. The histogram grew which indicates the buyers’ strength. RSI is in the overbought area. Both indicators generate a buy signal.

The USD/JPY broke the 200-EMA and headed away from it in the 4 hours chart. The moving averages (50, 100 and 200) are turning upwards.

Trading recommendations

The overall outlook remains bullish, for a growth towards 102.50 resistance area.