04, February 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The yen held last week in a relatively wide side corridor versus the dollar and closed the session by the opening price mark. The stock market impacted the pair greatly where there was a sharp fall, which provoked the withdrawal from risk, as well as fluctuations in the U.S. government debt market.

The pair continues to consolidate above the level 102.00, while retaining the possibility of growth resumption from the current levels to break above the maximum 105.40 that, if it is successful, will open the road to 110.70 once again.

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

In the medium term we expect a correctional rollback downwards. The volumes of the decline gradually increase sellers’ power. However there is a rising trend line 100.00 on the way of the declining rates. In the medium term a goal of a bounce up will be the resistance sloping line at 105.85