02, April 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

This week the Bank of Japan will report data on the outcome of its meeting. Market participants hope on the easing of monetary policy which may occur after Haruhiko Kuroda left his post.

Nikkei 225 showed a strong growth (almost 30% over the last 5 months). Japanese Yen lost 20% of its positions. Perhaps we will see the resumption of the pair USD/JPY towards 100 yen to the U.S. dollar. This will happen if investors will not be disappointed in the CB action plan.

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 falling. We recommend opening short orders.

MACD histogram is going down confirming a sell signal.

Trading recommendations

The downward moving continues. The pair slowly and steady is going down. Indicators suggest the downward movement.

The first goal of the southern movement is 92.60. If the pair consolidates at this level the downward movement will continue to 91.70.

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