06, March 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

Ichimoku Cloud Analysis confirms that the price continues to work out a buy signal. Yesterday the pair fell to 93.00, but did not go below this level being stopped by one of the Bollinger bands.

The yen was trading above the Ichimoku cloud the whole day. We still have a weak buy signal. If the yen breaks down the cloud and is fixed below it, the pair will resume a downward movement.

The price is above the Kijun-Sen and Tenkan-Sen lines. The cloud is neutral, the market is not defined.

Bollinger Bands are narrowing.
MACD is directed down.

Trading recommendations

We recommend waiting until it becomes clear what the goals are. Everything stands for an upward movement. The pair is almost broke through the Ichimoku cloud. If the pair breaks through the cloud, it will move up to the levels 93.93 and 94.65.

Should the pair return to the southern direction the price will go to 92.17. The signal to open short positions will be MACD when it changes its direction.

Opening orders you need to consider the fundamental news and the time of its release.