05, February 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

JPY Ichimoku chart is showing that the price continues to develop a buy signal with a weak sign of turning back. The current buy signal is confirmed and strong as Chinkou Span is above the price chart and the price is above the Ichimoku cloud. The first goal for the uptrend movement is the first resistance level – 93.18. When the pair overcomes this level we expect it to continue going up with the target of the second resistance level 93.73.

The uptrend movement will be strong as long as the price is above the Kijun-sen line (91.91). Should the pair not pass this level that fact shall question the further upward movement, making the "golden cross" weaker. In this case we look for a possible correction.

The Chinkou Span is above the price chart that confirms the current signal and the bullish mood of the market.

Indicator Bollinger Bands shows an upward movement, the bands are expanded and directed upwards. We still recommend trading long.

MACD is directed downward, supporting the idea of a possible correction. The fact that the price bounced from the resistance level 93.18 also suggests a short-term correction. Should the price turn up we may say that an uptrend is in the game again.

Trading recommendations

We advise you to go long. The first target for the up movement is the second resistance level – 93.18. Should the pair pass it a new target appears – 93.73.

It is recommended to place stop loss below 91.65 and with the growth of the line to move it up. When you gain 40-50 points of profit you can close an order or place a stop-loss in a breakeven zone.