05, September 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The Japanese yen was strong enough last week, now appears to be a relatively weak. Yen against several major currencies is on the verge of a breakthrough in the direction of further weakness.

The pair continues to rise above the psychological barrier 99.00 in the direction of the psychological barrier 100. A sustained break above 100 is necessary to complete the figure bullish "pennant" on the weekly chart and move on to the next target at 100.85 and 101.52.

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

Despite the temporary shutdown, the potential upward movement still persists. To continue growing the price need consolidating above the resistance line 99.90, almost the level 100.00. After breaking the level the price can go to the nearest strong resistance level 100.30 and to retest 100.65.