06, February 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

Analyzing USDJPY on February, 6th, we can see that the price has finally finished correction and continued an upward movement. The current signal to buy is confirmed and strong as Chinkou Span is below the price chart and the price is above the Ishimoku cloud.

Now the goal of the upward movement is the first level of resistance 93,73. If the price consolidates over this level an upward movement will continue to the second level of resistance 94,65. An upward movement will have power until the price is above a critical line of Kidjun-sen (92.39). If the price consolidates below this line that will question the upward movement and «the golden cross» will be weakened, so the price can begin movement to Ishimoku cloud.

The Chinkou Span is below the price chart that is confirmation of the current buy signal, indicating the bull mood of traders.

Bollinger Bands shows an upward movement, the bands are extending and heading upwards. It is recommended to consider going long.

MACD is up that indicates an upward movement as well. Now when the correction is over long position are more relevant after.

Trading recommendations

We advise to buy with the first target 93,73. When overcoming this target the price will go for the next one which is 94,65.

Stop-loss we place below 91,95, and this line goes up it is possible to move stop-loss upwards.

When we get profit of 30 - 40 points stop loss can be moved to a breakeven. You can expose a take-profit about 93,65 and 94,58 levels.