10, December 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The reports of improvement in the labor market of U.S. produced the strongest impression. The pair grew having returned the losses of the previous days, which were triggered by sales under the influence of technical factors.

The pair is correcting. The ultimate goal is still the 100.60-101.00 level, which is expected to act as immediate support, limiting further reduction of the pair.

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

The main attention is now focusing on the daily resistance at 103.20. If the price does not break it we expect a consolidation which is the signal of possible rebound down. The rebound potential target should be 101.60.