13, February 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

Prospects of the pair look positive, and after a short consolidation growth is expected up to the maximum 105.40. A break above 105.40 is also possible, and it will open the way to further consolidation at the direction of the resistance 110.70.
The role of the nearest support will be the area 100.75-101.00. Break below it will allow testing the key support at the level 100.00.

There is a confirmed and weak buy signal. Chinkou Span is below the price, the price is in the Ichimoku cloud. Kijun-sen and Tenkan-sen are directed upwards. The Cloud is neutral.

Bollinger Bands indicator shows an upward movement as its bands are expanded and directed upwards. MACD is growing, showing a buy signal.

Trading recommendations

The price cannot break through the level 102.60 several days in a row. It is a possible signal of the upward correction reversal. Now the price is on a trend line 102.40. There are not so much volumes; a bounce up to the level of resistance 103.00 is likely.