08, February 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

Analyzing USDJPY on February 8th, we see that the price has worked out the first level of resistance 93,73, but could not continue upward movement at once.

The current buy signal is confirmed and strong as Chinkou Span is above the price chart and the price above the Ichimoku cloud. If the price overcomes the target the upward movement will be on to the second level of resistance 94,65.

An upward movement will have power until the price is above a critical line of Kidjun-sen (93.01). If the price consolidates below this line it will question the upward movement and «the gold cross» will be weakened, so the price can begin movement to Ichimoku cloud.

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

Bollinger Bands shows an upward movement, the bands are extending and heading up. It is recommended to consider trade on buy.

MACD is turned down that indicates about current correction movement; that’s why long positions are relevant after finishing current correction. You can define it on turn MACD upward. If the price rebounds from a level 93,73, this also can be a signal for the downward correction.

Trading recommendations

We advise to take positions on buy with the first target 93,73. When overcoming this target long orders become actual to the next target – 94,65.

Stop-loss is placed below 92,85 and when this line goes up it is possible to move stop-loss upwards.

We can open long positions if MACD turns upwards or if the price rebounds from Kidjun-sen or fixes above 93,73 level.

When we pass 30 - 40 points, stop loss can be moved to breakeven. You can place take-profit about 93,65 and 94,58 levels.