11, March 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

Last week the Japanese currency was falling versus the dollar virtually the entire session and ended a five-day rally on the new local minima versus the dollar. Obviously, the yen will suspend its "bearish" rally versus the dollar, making a stopover for a correction, which will largely contribute to a technical factors.

The support level is at 103.00, the nearest resistance level is 103.80.

There is a strong buy signal. The price is above the cloud and above the Chinkou Span.

The upward movement will be continued as long the price is above the Kijun-sen. The Cloud is growing.
The Tenkan-Sen and the Kijun-Sen are directed upwards. Both lines are horizontal.

Bollinger Bands indicator points to a northern movement. Its bands are broadening being directed up.
MACD is in the positive area. The indicator is descending showing a sell signal.

Trading recommendations

The continued consolidation which is observed in the level of 102.60 - 101.70 was replaced to an upward trend. The resistance 102.60 break is a continuation of the bullish trend. The immediate goal of the growth is the resistance level 104.00.