08, July 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

According to strategists in general the data from Japan showed a substantial growth. Abe's approval rating is also quite well-kept. These two factors will support the risk and will contribute to an outflow of capital from Japan.

The current buy signal is confirmed and strong as Chinkou Span is above the price, and the price is above the Ichimoku cloud. The price grew up Friday having stopped in the area 101.30. In the case of overcoming this level the upward movement will be continued to the resistance level 102.30.

The upward movement will be relevant as long as the price is above Kijun-sen, if the yen consolidates below the Kijun-sen, the "golden cross" will be weakened.

Chinkou Span is above the price, which confirms the current buy signal and indicates a bullish market sentiment for the pair.

Bollinger Bands show a continuation of the upward movement, the band geared up and broadening, making relevant long positions in the market now.
MACD is directed up, confirming the current uptrend.

Trading Recommendations

From a fundamental point of view, the development of the upward movement is till possible. Should the price break 100.87 we can consider long positions. The primary goal is 101.30, in case of continuous growth - 101.80. Stop-loss to be placed at the level 99.85.