30, December 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

Japan published the weak macroeconomic statistics that formed a short-term bullish trend within the pair USD/JPY. It should al so be noted the Japan and the US bond yields aggressive growth - the differential was at the level of 200 basis points the last week trading day that is a strong bullish signal.

Without volumes the US dollar rose against the Japanese yen from the support level of 115.80. The upward trend stopped at the resistance level of 120.40 where there was a short-term consolidation formed. Then the dollar continued its growth.

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

There is a confirmed and a strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a horizontal movement. The upward movement will be until the price is above the Cloud.

The MACD indicator is in a positive territory. The price is increasing.

Trading recommendations

If the price falls it will get to 119.20 that will be followed by a consolidation.