05, February 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

Yen has shown a steady growth versus the dollar. The yen popularity as a shelter currency increased amid the fall in the stock markets, in particular the Nikkei index that fell almost by 2.0 %, as well as continuing decline of the USA Treasuries profitability.

The pair has broken below 102.00 and reached the area 101.00-101.30. It can still decrease to the next support 99.90-100.00.

There is a confirmed and strong sell signal. Chinkou Span is below the price, the price is below the Ichimoku cloud. The southern movement remains until the price is below the Kijun-sen. Kijun-sen and Tenkan-sen are directed downwards. The Cloud is descending.

Bollinger Bands indicator shows a downward movement as its bands are expanded and directed downwards. MACD is decreasing, showing a sell signal.

Trading recommendations

There is a strong support 100.40 on the pair's way. It is likely that this level will be tested today. Should the pair break this level it might go to 99.50.