02, May 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

After unsuccessful attempts to consolidate above 98.00 at the end of the beginning of the week the pair continued slowly going down. Yesterday the pair traded in a narrow sideways channel. The downward movement is slowed down.

USD/JPY is below the Kijun-Sen and Tenkan-Sen, Kijun-Sen line is directed down, the Cloud is neutral.

Bollinger bands are narrowing, the middle line is directed downwards.
The MACD histogram is in a negative zone, below the signal line. The indicator is going down, supporting a sell signal.

Trading recommendations

Indicators show the continuation of the southern movement, but it is also possible and a correction.

The pair is directed downward. If the pressure continues the USD/JPY can go to the level 97.80. The next target of the southern movement is 96.55.

The second scenario is a trading in a sideways channel. This scenario is more vital, at least until May 2, the day the interest rates are published in Europe. In this case, the pair will trade in the corridor: 99.30 - 97.80.