04, June 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The pair USD/JPY is in an uptrend since November 2012. The yen weakness reflects the expectations of the Bank of Japan actions that are necessary in order to generate inflation in the country.

The price is being traded below the Kijun-Sen and Tenkan-Sen, Kijun-Sen line is pointing down, the cloud has a neutral form.

Bands Bollinger Bands formed a side downtrend channel.
MACD began to go down.

Trading recommendations

The pair is steadily approaching the psychological support level at 100, having broken the last support at 100.70. The current situation greatly reduces the chances of the pair for an upward movement as the downside potential is gradually gaining its power.

We expect that the downward movement will not go beyond the support between 100.70/98.72. A rebound to 102.62 is possible.

If bulls return to the market breaking the resistance at 102.62, the pair may re-test its maximum at 103.76.