11, March 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

One member of the government said that the softening of monetary policy should be accompanied with the budget expenditures. Such a move should help the country to avoid a deflation, as rising costs lead to an increase in bond yields and the yen.

On Friday, the yen continued to hold its position which had been won against the dollar after Japanese investors repatriated foreign income dividends and bond coupons.

Yen as always stable in its growth. On Friday, the price worked and tested 94.65 and 96.00. The consolidation is expected at the level 96.00 with the possibility to go back to 94.65.

Yen continues to trade above the Ichimoku cloud, the buy signal is strong and confirmed.

The price is above the Kijun-Sen and Tenkan-Sen lines.

Bollinger Bands are expanding and directed upward, indicating an upward movement.
MACD histogram moves up and reaches its peak. It is possible a correction.

Trading recommendations

The pair continues its growth.

The pair is trading above the cloud the indicators confirm the upward movement. The first goal of the movement is the level 96.00, which is well tested, but not worked out. Should the pair consolidate at it the price will continue to move to the level 96.55.

Intermediate level is 96.90, the final target is 97.78.