03, February 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The yen also declined versus the dollar, but the loss of yen was less significant than the Europeans had. At that time there was no usual correlation with the stock market of Japan, as the Nikkei fell almost by 2.5%. Probably interest to sales of the yen again was provoked by the U.S. Treasury bonds, which in the previous session came under pressure again.

The pair is trading above 102.00 retaining the possibility of growth from the current levels to break above the maximum 105.40 that, if it is successful that will open the road to the resistance 110.70.

There is a confirmed and strong sell signal. Chinkou Span is below the price, the price is below the Ichimoku cloud. The southern movement remains until the price is below the Kijun-sen. Kijun-sen and Tenkan-sen are directed downwards. The Cloud is descending.

Bollinger Bands indicator shows that a downward movement as its bands are expanded and directed downwards. MACD is decreasing, showing a sell signal.

Trading recommendations

After the 102.00 breakthrough the pair will continue falling to 101.50 and 101. We do not exclude the false level retests.