02, August 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The dollar/yen reacts to U.S. reports better than the other currencies. Publication of applications for unemployment benefits, as well as component employed in the release of the ISM manufacturing industry will be able to help with the expectations for non farm payrolls. If we get a positive picture of the labor market, the pair will be able to recover to 100.

Kijun-Sen and Tenkan-Sen are crossed in a "golden cross". However, both trend lines are moving up rapidly towards each other. Cloud is falling. The price broke the cloud having weakened the sell signal.

Bollinger Bands follow the price down. The indicator shows a high volatility.
MACD is growing, confirming the current upward movement.

Trading Recommendations

The downward movement is temporally suspended. Should the pair go down it will go around 94.51, on the support of 92.51 and finally to the 90.01 area.

The reverse break and a consolidation above the range 98.26-99.31 will open the way for new growth above the minor resistance at 101.51 to 103.76 maximum.
Overcoming this level in the future will point to the medium-term growth in the direction of the level 110.02.