06, December 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The Japanese yen continued to grow versus the dollar for the second straight session and again strengthened in a process of trading. Obviously, the number of traders to take profit on the pair on strong resistance levels enriched. It is possible also that the pair had an impact from the labor report of the U.S., that will be published on Friday after the ISM.

Chinkou-span is above the price, the pair is in the Ichimoku cloud. Tenkan-sen and Kijun-sen are directed downwards. The lines are crossed forming a “Dead cross”. Chinkou Span is below the price, the cloud is neutral.

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

Trading recommendations

The breakthrough of rising trend line occurred at an elevated volume. But to continue the decline, the price must consolidate below the intermediate support level 102.00. In this case, the way to the next level, located at the level 101.30 opens in front of the sellers.