31, May 2016

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The pair continued its recovery. Rumors that Abe (the Prime Minister of Japan ) was likely to postpone the sales tax increase to 2.5 years pressured the yen. The market volatility was reduced amid to the US holiday – Memorial Day.

Current situation

In the absence of majority of traders (due to holidays in the USA and the UK) the dollar started the week with a growth. Even though the pair started the week below the mark 110.60 it grew to the level 111.40 by the end of Monday. The resistance is at the level of 111.40, the support is at 110.60.

MACD is in a positive area. The histogram is above the signal line. MACD kept growing. The signal is bullish. Indicator is above 70 and is overbought.

Trading recommendations

After the support level of 110.60 breakthrough down the way to the support 109.80 will be opened.