13, June 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The dollar fell sharply against the yen, as investors continued to liquidate their short positions on the yen, which caused the fall of the pair. MacNeil Curry from Bank of America Corp explains that most investors have put carry trade - as, for example, selling yen to buy Mexican debt - in periods of low volatility. But now that the increased volatility in global markets, they have to close their positions in order to manage risk.

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

If the downward movement continues the pair will go to 94.80. Passing this level the pair will go down to the next support - 94. We do not see that the downward movement is slowing. So the USD/JPY has all chances to test the level 94 and even to fall more.

In the case of a turn our first target will be the level 97.