05, November 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The "bulls" will try to take a strong resistance at 99.00 before the USA statistics. It should also be recalled that at that level a medium-term resistance line is located. Therefore, the "bulls" need a lot of strength to get through the barriers. Should the price break 99.00 barrier the road to 100.00 and above will be open. In the reverse scenario we can expect a decrease to the mark 98.00.

There is a strong and confirmed buy signal, as the chart is consolidated below Chinkou span, and the Ichimoku cloud is below the price. Tenkan-sen and Kijun-sen are directed upwards. Chinkou Span is below the price, the cloud is growing. Tenkan-Sen and Kijun-sen are directed upwards.

Bollinger Bands indicates the change of the trend being directed. The bands are widening.
The MACD is in a positive area right now.

Trading recommendations

The price is growing. We believe it is a short-term correction that will lead to a consolidation soon.
The first target of the northern movement is 98.90. If the pair breaks this it may go to 99.20 and 99.60.

We should not exclude and a bounce down to 98.40.