Since Mid of February the Japanese Yen has been working hard to break the US Dollar, but it is losing strength on an hourly basis, lingering between a resistance at around 114.50 and a support which has not been reached in a while at 111.50.

4 Hour Chart

On the 4HR Chart, even though there is a Bullish sentiment, it may not have the strength to change the trend from Daily, for the simple fact that there is still a long way to go until the Bulls regain control. With this in mind, once the support at 113.40 is broken the down trend will continue with less to no effort.

Having another support level at 112.25 may be encouraging for some Bullish traders but if this price target will be reached in the near future, the Japanese Yen will yet again control the chart. Even if the fundamentals will help in the short term, the overall trend remains focused on the “SHORT” side.

Considering the higher highs and lower lows, one may think that everything is going as planned, but it is not really typical for the Japanese Yen to linger around an area for too much time, and the general pressure on the price is indeed to “hammer” it.

With the final support level at 111.50, tested but not broken on the 24th of February, right now everything points out that the US Dollar may become a problem for the Japanese Yen in the short term.

Daily Chart

On the Daily Chart things seem much simpler. We have a clear SELL trend, with the price consolidating around 113.00 for the last two weeks, even though for almost the entire February we saw a huge drop. This lingering will not hold for long, and there is only one way to go as per the trend continuation: full out BEARISH.

The 111.50 support line has not been seen since October 2014, when the price broke it with ease. This may not happen in 2016, and some fighting may occur between the BULLS and the BEARS around this price level even though it will not hold for long.

With a resistance holding at around 114.00 there is still enough room for the Japanese Yen to grow, and a third try on 111.50 should be enough for us to see higher lows and lower highs once more.