07, August 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

Most Asian markets are trading lower, following the downward behind their U.S. counterparts, and some weakening in the statements of income, and concerns about the Fed's next move, which puts pressure on stocks in the region. Japan's Nikkei 225 fell 1.56% as the yen rose against the dollar.

After the dollar/yen bounced off the Senkou Span A, which is the lower boundary of the cloud, it has moved beyond the clouds and formed a big "bull" candle, and managed to break up the two trend lines. However, the price could not resist and formed a "bear" candle, the price went down to the cloud.

Trend Tenkan-Sen and Kijun-Sen intersected in a descending "dead cross". Kijun-sen is moving in a horizontal direction parallel to the cloud, and the Tenkan-Sen continues to decline.

Bollinger Bands follow the price down. The indicator shows a high volatility.
MACD is in a negative area..

Trading recommendations

The mood remains unfavorable and while the support in the 98.10/00 can give bulls an opportunity to take a breath, USD/JPY maintains traction to test support at 97.60, and the general weakening of the U.S. currency favors the materialization of such scenarios.

One speculator of Singapore's banks, commenting on the dynamics of the pair, advises to sell when the pair tries to grow to 98.60/70 with a stop above 99.20 and the expectation of falling to 97.60, and then to 97.