03, April 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

On Monday, the Japanese yen rose against the U.S. dollar. The U.S. dollar has increased its losses against other major currencies. This happened after the news that the index of manufacturing activity in the U.S. unexpectedly fell.

Bank of Japan 4.3 will hold a meeting on monetary policy this week. Perhaps the published data of declining industrial activity, influenced the decision to soften its monetary policy.

The sell signal is confirmed. The price is working out a “dead cross”. Yen is below the Kijun-Sen and Tenkan-Sen, Kijun-Sen line directed to the side, the cloud is going down. The pair is trading under the cloud.

If the pair consolidates above the Kijun-Sen, it can begin the northern movement.

Indicator Bollinger midline steady continues falling. We recommend opening short orders.

MACD histogram is going down confirming a sell signal.

Trading recommendations

The down moving continues. The pair slowly and steady is going down. Indicators suggest the downward movement.

The first goal of the southern movement is 93.40. If the pair consolidates at this level the downward movement will continue to 92.60. The pair reached the second target yesterday, but could not hold on it and returned back to 93.40.

We can confidently say about long positions only after the breakdown of the level 94.65.