03, March 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

Reduced risk appetite supported the Japanese currency in a dispute with the dollar at the beginning of the last session. However, the dollar was able to neutralize some of the losses and closed with only a minor minus.

Meanwhile, as the pair is trading above the 100.00, medium-term risks remain ascendant, however, to confirm the growth with the aim of testing the local maximum 105.40 it first needs to consolidate above 102.20.

There is a confirmed and strong sell signal. Chinkou Span is above the price, the price is below the Ichimoku cloud. Kijun-sen and Tenkan-sen are horizontal. The Cloud is directed down.

Bollinger Bands indicator shows a lateral movement as its bands are broadening and directed aside. MACD histogram is in a negative zone. The histogram is descending.

Trading recommendations

The resistance level 102.65 proved to be an obstacle on the buyers’ way. The continued consolidation has led to a breakthrough of rising trend line 101.60. The break of the support level 101.60 will open the way down to the 101.00.