02, July 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

Analyzing the yen we can see that the price has formed a "golden cross" being traded above the Ichimoku cloud.

The current buy signal is confirmed and strong as Chinkou Span is above the price, and the price is above the Ichimoku cloud. So now the goal for the upward movement is 100. In the case of overcoming the first target, the upward movement will be continued to the resistance level 100.53.

The upward movement will be relevant as long as the price is above Kijun-sen, if the yen consolidates below the Kijun-sen, the "golden cross" will be weakened and the downward movement may resume to the first level of support 92.16.

Chinkou Span is above the price, which confirms the current buy signal and indicates bullish market sentiment for the pair.

Bollinger Bands show a continuation of the upward movement, the band geared up and broadening, making relevant long positions in the market now.

MACD is directed up, confirming the current uptrend.

Trading Recommendations

It is likely that the dollar/yen will test 100 soon, as the RSI suggests that bulls dominate at the market now. However, orders that are related to the beginning of a new quarter, placed by Japanese exporters, should pressure on the pair in case of its growth. That's why we believe that the pair will not exceed the 100 mark too much.