08, April 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

Last week everyone was waiting for the Bank of Japan meeting. The meeting was positive for the currency. The Central Bank decided to lower the inflation to 2%. The market positively reacted to the decision and the pair began a sharp rise, reaching 97.20 on Friday.

Yen is above the Kijun-Sen and Tenkan-Sen, Kijun-Sen line is directed upward, the cloud is growing.

Bollinger midline followed the price and is directed upward. The indicator lines are directed to different directions, indicating the uncertainty of the market.

Histogram MACD gives a buy signal, the indicator is going upwards.

Trading recommendations

In this situation, it is best to open buy orders, but only if the price breaks the level 97.20.

However, a downward correction is still possible to the level 96.30. We expect a correction to the levels 95.95, 95.55 and 95.00 in a longer term.