01, April 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

Players still focus on the European problems. The hype around Cyprus is coming to naught, but this topic won't leave the headlines in the nearest future. There is a possibility that the pressure on the euro continues and the risk appetite will remain minimal.

The USD/JPY was trading at a low price range on Friday. Level 93 is the key at this point. The sell signal is confirmed. The price is working out a “dead cross”. Yen is below the Kijun-Sen and Tenkan-Sen, Kijun-Sen line directed to the side, the cloud is going down. The pair is trading under the cloud.

If the pair consolidates above the Kijun-Sen, it can begin the northern movement.

Indicator Bollinger midline steady continues declining. The price is in a fixed price channel. The indicator does not contradict the further development of the southern movement in the short term. We recommend opening short orders.

MACD histogram is going down confirming a sell signal.

Trading recommendations

We believe that the pair will be in a flat in the short term. The yen is weak because of a Central Bank aggressive policy which continues to support short course of a national currency to stimulate the economy.

The down moving continues. The pair slowly and steady is going down.

Indicators suggest the downward movement.

The first goal of the southern movement is 93.93. If the pair consolidates at this level the downward movement will continue to 93.40.

We can confidently say about long positions only after the breakdown of the level 94.65.