31, March 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The U.S. dollar rose up versus the Japanese yen. The main driver was the events in the Japanese stock market, which experienced a strong price growth than we expected. After the trading closing the interest in the yen selling fell down, and even its buying was observed, the cause of which was probably a slight decrease in yield of the “Treasuries”.

The first support is in the area of 102.23, the next one is 101.60. The resistance is 103.00.

The pair is growing. Kijun-sen and Tenkan-sen are directed upwards. The northern movement is strong as the pair is above the Cloud. The Cloud is growing as well. The northern movement remains until Kijun-Sen is below the price.

MACD is in a positive area, but below its signal line. The indicator is growing showing a buy signal.

Trading recommendations

A bounce back to 102.23 is possible. Still the bulls have returned to the market. We expect a growth towards 103.80.