04, April 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

USD/JPY rose a bit in anticipation of the Bank of Japan decision regarding monetary policy, which will be announced on Thursday. This is the first decision of the central bank, which was adopted under the new control Haruhiko Kuroda. In the last five months expectations that the new management of the Bank of Japan will implement an aggressive easing of monetary policy in an effort to overcome deflation have increased.

The pair jumped out breaking through the Cloud. Yen is above the Kijun-Sen and Tenkan-Sen, Kijun-Sen line directed to the side, the cloud is still going down.

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

Indicator Bollinger midline steady continues falling. The price moves in a fixed price range.
MACD histogram is going up, the signal line left the histogram showing a buy signal.

Trading recommendations

Today's Central Bank meeting will show the future direction for the pair. The pair will grow if the volume of buying assets is increased, in this case the pair will go to 95. If the decision of the bank failed to meet expectations of investors, the pair will continue falling to February lows - 91.00.

In the meantime, we should refrain from entering the market and wait for the meeting results.