31, July 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The pressure on the yen was resumed by the dollar after a short break. The prospect of getting the good reports on the U.S. economy and the risk of hearing the Fed policy tightening imminent probability hints are more influential factors than the fears for worsening the geopolitical situation. The published consumer spending, unemployment and retail sales in June had no effect on the market. The employment and GDP good results will add support for the dollar, but it will mostly depend on the Fed’s information - the "pigeon" plan rhetoric will return the pair to the decrease.

The price is finding the first support at 102.70, the next one is at 102.23. The price is finding the first resistance at 103.00, the next one is at 103.35.

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

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

Trading recommendations

After the trend line 101.60 breakthrough up the way to the resistance 103.35 is opened.