11, July 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

The current buy signal is confirmed but weak as Chinkou Span is below the price, and the price is below the Ichimoku cloud. The price corrected yesterday having stopped in the area 98.90. In the case of overcoming this level the downwardward movement will be continued to the support level 97.90.

The downward movement will be relevant as long as the price is below Kijun-sen.

Chinkou Span is below the price, which confirms the current sell signal and indicates a bearish market sentiment of the pair.

Bollinger Bands show a continuation of the upward movement, still its bandsa are turning down after the price.
MACD is directed down, confirming the current downtrend.

Trading Recommendations

The risk of the correction became possible after formation of a "bearish pennant". Recovery above 101.03 will increase the tone of the pair, and the restoration of the positions above 101.23 would open the way again to the maximum recorded at 101.54.