13, September 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

Dollar/yen is again under the pressure. In general, the factors that provoked yesterday's drop of the pair remain relevant today: it is primarily the situation in Syria and the temporary reduction of geopolitical tensions as well as the coming FOMC meeting.

The total value of industrial new orders received for 280 manufacturers operating in Japan increased by 4.4% in July compared with the previous month to a seasonally adjusted. Demand for the yen strengthened after the release of data on orders for machinery in Japan. In August the figure has not changed after falling by 2.7% in July, while analysts expected an increase in the amount of 2.4%.

Tenkan-Sen and Kijun-Sen are crossed in a descending "dead cross". Kijun-sen is moving in a horizontal direction parallel to the cloud, and the Tenkan-Sen continues to grow. The price is above the cloud. The Cloud is growing.

Bollinger Bands follow the price up. The indicator shows a high volatility.
MACD is in a positive area and is descending.

Trading recommendations

The pair is targeted to return to the May highs. The closest major resistance is July 19 maximum (100.88), a break above which will open the way to further growth towards 101.54 and 101.61.