05, December 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The yen was able to recover its losses versus the dollar and other major opponents at the first day of trading this week. This is probably the result of some technical factors caused by strong resistance levels as well as the result of preparing the market for important events scheduled for this week in the U.S. and Europe.

Chinkou-span, and the Ichimoku cloud is below the price. Tenkan-sen and Kijun-sen are directed upwards. The lines are crossed forming a “Dead cross”. Chinkou Span is below the price, the cloud is growing. Tenkan-Sen and Kijun-sen are horizontal

Bollinger Bands indicates an upward movement. The bands are slightly expanded and directed upwards. MACD histogram is still located in the positive zone, but slightly below its signal line, continues to gradually decline and thus sends a signal to sell.

Trading recommendations

The rebound from 102.00 trend line was with increased volumes. As we see the bulls are still very strong, despite the fact that the price failed to break above the strong resistance level 102.30 for two days. The potential upside target is the resistance level 103.20, 103.50 retest.