30, September 2015

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The decline for the "risky assets" may support the yen as a funding currency. The debt market dynamics also points out to the same trend: the US and Japanese government bond yields are declining which increases the Japanese assets investments attractiveness. The FOMC leaders’ positive attitude supports the US dollar.

Trading day started with the pair growth, but it was a short-term phenomenon. For the second half of the day the deals were for sale, and the pair decrease not even tested the 120.40 resistance.

The price is finding the first support at 119.20, the next one is 118.40. The price is finding the first resistance at 120.40, the next one is at 121.60.

There is a non-confirmed and a strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows a horizontal movement and form a “Dead Cross”. The downward movement will be until the price is under the Cloud.

The MACD indicator is in a neutral territory. The price is decreasing.

Trading recommendations

We advise to consider short positions with the first target - 119.20. After fixing below the first target, the level 118.40 will become the next one.