07, February 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

At the yesterday's trading the price started to grow. Probably the pair was under the stock market and the U.S. government debts influence.

The pair is consolidating around the support in the area 101.00–101.40.

There remains the possibility of falling to the next support in the area 100.00. Only the break and fixing below 100.00 will cancel the 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 at a downward movement as its bands are expanded and directed downwards. MACD is growing, showing a buy signal.

Trading recommendations

The support level 101.00 does not allow sellers to break downwards to confidently continue a downward trend.

The rebound from the trend line will lead to one more 101.00 retest. If the price is able to break below this level from the third time, a way to levels 100.50 and 100.00 will be opened before sellers.