04, September 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

Asian stock markets started September with a growth after two separate reports on activity of the Chinese production that confirmed hopes of a restoration in the second-large economy in the world.

Japanese shares jumped up by 1.4 percent, in Australia S & P ASX 200 reached a three-months maximum while Shanghai Composite and Kospi of South Korea remained flat.

USD/JPY made break above the line of a trend and a zone of resistance around 98.85/90, having placed the order for return to 100.00/100.90, but before it there can be a kickback. Wider picture: support is on 95.80 (range narrowing), and our medium-term prospect in the field of 105.

Tenkan-Sen and Kijun-Sen are crossed in a descending "dead cross". Kijun-sen is moving in a horizontal direction parallel to the cloud, and the Tenkan-Sen continues to grow. The price is above the cloud. The Cloud is neutral.

Bollinger Bands follow the price up. The indicator shows a high volatility.
MACD is in a positive area and is growing.

Trading recommendations

The confident break of the resistance 99.55-67, in long-term prospect will create favorable conditions for the movement to the level 110.58. However in a context of a short-term dynamics the dollar/yen approaches an important option barrier – 100.00. Offers from the Japanese exporters, exposed on protection of this level, most likely, will block its further growth (at least, for a while). The support takes place in the area 98.76.