04, October 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

USD/JPY gained strength in Asia, despite the political paralysis in Washington trying to restore weekly losses. Foreign investment in the bonds of 672.1 billion from the previous 175.6 billion yen. Foreign investment in Japanese stocks have also shown impressive growth over the past 341.4 billion 182.1 billion yen. In the absence of a willingness to negotiate with both sides the tension in Washington and off the U.S. government continues to put pressure on the currency.

The downward movement will be relevant as long as the price is below the critical Kijun-sen line if the price consolidates above the Kijun-sen, the "dead cross" will be weakened and may be canceled.

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 below the cloud. The Cloud is growing.

Bollinger Bands indicates that the downward movement continues, the bands widen and a directed downwards.
MACD is in a negative area.

Trading recommendations

To continue the downward movement the price needs to break 97.60 back down. In this case, the price can go up to the level of today's rebound in 97.20 just possible retest of the 97.00 mark.