Device-to-Device (D2D) communication enables a direct data transmission between User Equipment (UE) without the relay by Base Station (BS). When D2D communication is employed underlying the Long Term Evolution (LTE) cellular network, it can enhance the spectrum utilization, power-saving efficiency and network capacity. However, it might also cause inter-interferences which degrade the system performance. In this paper, we propose a novel scheme called location recommendation and power adjustment algorithm (LR&PA) scheme which dynamically adjusts the location and transmission power of D2D users to reduce inter-interferences between D2D and LTE cellular users so as to enhance the total system capacity. The simulation results illustrate that, comparing to other existing schemes, LR&PA effectively avoids inter-interferences between D2D and LTE cellular users, and thus improves the total capacity in the D2D communication underlying LTE cellular networks.