08, January 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

Since the beginning of the week, the dollar/yen trade is being traded within the downward channel boundaries. During Monday pair hit 103.95, which is a three-week low. But soon the pair again resumed a growth that was supported by Janet Yellen's statements, a new Federal Reserve chairman.

The pair managed to hold above the 104.05 area, which means that in the long-term uptrend is likely rapid regrowth with a goal to test the level 110.73.
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 upper limit of the corridor will limit the growth in the near future. Quotes can grow to the level 104.67, and then the pair can correct to 104.14 and 103.83 marks.

It is advisable to open short positions with taking-profit at 103.85.