13, November 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

It should be noted that ISM Services index is negative for the yen. The index release has not impacted the pair, still it can cheer "bulls" to storm the maximum value of the last week, located at around 99.40.

There is a strong and confirmed buy signal, as the chart is consolidated below Chinkou span, and the Ichimoku cloud is below the price. Tenkan-sen and Kijun-sen are directed upwards. Chinkou Span is below the price, the cloud is growing. Tenkan-Sen and Kijun-sen are directed upwards.

Bollinger Bands indicates the change of the trend being directed. The bands are widening.
The MACD is in a positive area right now. The histogram is decreasing.

Trading recommendations

In order to test the downward trend line 99.50, the price should break above the inclined resistance at 99.50. There is a high probability of short-term bounce down to test the trend line or the support level 99.30.