06, February 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The yen fell slightly versus the dollar. The pair found a support in the area 101.00–101.40 that makes possible the resumption of the uptrend from the current levels with a view to overcoming the maximum 105.40. Only the breakthrough and consolidation lower the level 99.90–100.00 will cancel positive expectations and confirm the transition to long-term correction.

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

The volumes are weakening. The trend line 101.80 retest will be likely accompanied by a bounce down. The nearest target is 101.00.