13, August 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

Japanese Prime Minister Abe will decide whether to amend or block the controversial tax on retail sales. The first two steps to be implemented early in the new fiscal year.

The price is continuing to decline and can overcome the second support level after just a small retracement. The current sell signal is weak and confirmed, as Chinkou span entrenched above the price, and the price is below the Ichimoku cloud. The goal for the downward movement is still the support level 96.37.

Bollinger Bands follow the price down. The indicator shows a low volatility.
MACD is in a negative area.

Trading recommendations

The area between the levels 96.20 and 94.99 on the provided four-hour chart made a support for the movement, after which the price formed a "V-shaped bottom" and climbed up.
We expect the development of local correction rates up to levels 96.96 and 97.58. Then perhaps there will be a move toward local downward trend in the support area between the levels of 96.20 and 94.99.