12, June 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

Before the beginning of the last trading session, the Nikkei rose nearly at 5%. Meanwhile, Japan's GDP grew by 4.1% in the 1st quarter.

These factors have provided support for the dollar against the yen, as they have clear evidence of the success of the policy, Shinzo Abe, Prime Minister of Japan to stimulate the economy by softening monetary policy.

The solution S & P's forecast to increase to U.S. credit rating caused a rise in the U.S. dollar above 99 Japanese yen. The agency S&P highlighted the exceptional status of the dollar as a reserve currency, raising the prospects of the U.S. to stable from negative.

The sell signal is confirmed. The price is below the Ichimoku cloud.

The price is being traded below the Kijun-Sen and Tenkan-Sen, Kijun-Sen line is pointing down, the cloud has a neutral form.

Bands Bollinger Bands formed a side downtrend channel.
MACD began to go down.

Trading recommendations

We expect that the pair will be traded in a range 99.37/97.05 and in the medium term may test resistance at 100.00. The further reaction will determine the direction of the trend. The breaking of support at 97.05 will lead the pair to a lower Bollinger band, where the movement can be stopped.