02, October 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

USD / JPY is strong ahead of key events in both countries with potential corporate tax cuts and sales tax in Japan as well as the unresolved question of costs in the United States. In the recently published Japanese data, Tankan, prospects for production in the third quarter amounted to 11, higher than in the past and the expected 10. Tankan industry rose 5.1% compared with the previous 5.5%, while 6.0% was expected. Tankan large manufacturing index was 12 against the last 4 and about 7 of expected. Tankan non-production sector was 14 against previous 12 and 15 expectations.

The current sell signal is strong and confirmed, as Chinkou span entrenched below the price and the price is below the Ichimoku cloud

The downward movement will be relevant as long as the price is below the critical Kijun-sen line if the price consolidates above the Kijun-sen, the "dead cross" will be weakened and may be canceled.

Tenkan-Sen and Kijun-Sen are crossed in a descending "dead cross". Kijun-sen is moving in a horizontal direction parallel to the cloud, and the Tenkan-Sen continues to grow. The price is below the cloud. The Cloud is growing.

Bollinger Bands follow the price up. The indicator shows a high volatility.
MACD is in a negative area.

Trading recommendations

As the USDJPY currency pair continues to trade in a southerly direction, a break of 98.00 support may take place. In this case, the previously marked level of 97.60 will be the potential target of the fall.