09, December 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

Yen becomes strengthened versus the dollar and the euro amid falling stock markets, which increases the demand for currency-seekers, including the yen.

Preliminary estimate of U.S. GDP in Q3 was 3.6 % vs. 3.1% and 2.5% in the previous period. Morgan Stanley lowered its forecast for U.S. GDP growth in the 4th quarter to 1%, as according to the analysts significant increase in stocks in Q3, which was the main reason for the increase in GDP growth to 3.6%, is expected to lead to a significant reduction in the index Q4.

Chinkou-span is above the price, the pair is in the Ichimoku cloud. Tenkan-sen and Kijun-sen are directed downwards. The lines are crossed forming a “Dead cross”. Chinkou Span is below the price, the cloud is neutral.

Bollinger Bands still indicate an upward movement. The bands are slightly expanded and directed upwards. MACD histogram is located in a negative zone, slightly below its signal line, continues to gradually decline and thus sends a signal to sell.

Trading recommendations

We believe that the bullish trend will be continued. The main target of growth are the two levels: 102.60 and 103.00 - 103.20.