07, February 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

Analyzing USDJPY on February, 7th, we can see that the price was corrected and renewed its upward movement. The pair is trying to work out the support level – 93.73.

The current buy signal is confirmed and strong as the Chinkou Span is above the price chart and the price is above the Ichimoku cloud. Now the goal of the upward movement is the first level of resistance 93,73 which is tested but not worked out yet.

If the price overcomes the target the upward movement will be continue to the second level of resistance 94,65.

An upward movement will have power until the price is above the Kidjun-sen (92,83). If the price consolidates below this line that will question the upward movement and «the gold cross» will be weakened. In this case the price will begin its movement to the Ichimoku cloud.

The Chinkou Span is above the price chart that is confirmation of the current sell signal, indicating the bullish mood of traders.

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

MACD is turned up that indicates an upward movement; long positions are more relevant before beginning of the new correction.

If the price rebounds from a level 92,03 this can be a signal for the beginning of a downward correction.

Trading recommendations

We advise to buy with the first target 93,73. When overcoming this target long positions to the next level (94,65) will become actual .

Stop-loss is to placed more lower than 92,40. When this line goes up it is possible to move stop-loss upwards after it.
We can close orders if MACD turns downwards or the price rebounds from the level 93,73.

When we get profit of 30 - 40 points stop loss can be moved to a breakeven.