07, January 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The dollar/yen trading ended last Friday at the level of the pricen opening. At first the dollar fell versus the yen amid a decline in profitability "treasuries", but by the end of trading a "green" returned losses and returned to its original position, supported by Fed officers' speeches. The holidays are over in Japan, this week will be fully operational, still there will not be any important news this week.

If the current area is passed, the correction will be continued to the next support in the area 99.65-100.40. The more significant falling still looks unlikely. At the same time, if the pair stays above the level 104.00, it will continue to grow to 110.70.

There is a confirmed and weak sell signal. Chinkou Span is above the price, the price is in the Ichimoku cloud. The southern movement remains until the price is below the Kijun-sen. Tenkan-sen and Kijun-sen are directed down.

Bollinger Bands indicator shows that a downward movement as its bands are expanded and directed downwards. MACD is decreasing, showing a sell signal.

Trading recommendations

The pair continues to consolidate after reaching the mark 105.50. If the pair gets under 104.00 it is likely to increase the downward trend and will target the pair on testing 102.00-102.40 support area.