13, February 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

Analyzing the USD/JPY on the Forex market on February 13, we can see that the price could not work out the Ichimoku cloud, it fixed above the Kijun-Sen and formed new "Golden Cross." The current buy signal is confirmed and strong as the Chinkou Span is below the price chart and the price is below the Ichimoku cloud.

For the current moment the goal of an upward movement is again level 93.73, which the price successfully overcame but returned during the intraday session. If the price fixes above that target an upward movement will continue with the next goal which is 94.65. The upward movement will be actual as long as the price is above the Kidjun-sen (93.28). If the price consolidates above this line that will question the upward movement, the “Golden Cross” will weaken and the price may move down towards the Ichimoku cloud.

The Chinkou Span is located above the price chart confirming the current signal to buy showing the bullish mood at market.

Bollinger Bands indicates the upward movement bands are expanding and directed upwards, so now it is recommended to consider only trade on the rise.

MACD is directed upwards indicating the current upwards movement. According to the indicator it is better to go long. The signal to close long orders will be a turn of MACD down that will be a signal for a correction.

If the price consolidates above the level at 93.82, we will receive another signal for a downward correction.

Trading recommendations

On the USD/JPY market we recommend to consider an upward trading with the first target at 93.73. When overcoming this target long positions become actual for the level at 94.65.

Stop-loss we place below 93,35 and when this line goes up we take it up with the price.

It is recommended to close orders manually when MACD reverses to the downside. Getting 30- 40 profit points we can place Stop Loss to the non-loss area. Take-profit can be set slightly above the target levels.

Apart from the technical analysis it is necessary to consider the fundamental data and the time of its release.

In case front-running deals are possible, you can take a smaller timeframe (M15-M30) and follow the reversal of the trend indicator (Heiken-Ashi, for example) near the price level where the price reversal will probably take place.