13, December 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The yen continued to strengthen for the second day amid falling stock markets - Nikkei fell for 0.6% on Wednesday. The pair corrected after another unsuccessful attempt to test the resistance 103.75. This forms a double top indicates the possibility of falling below support at 101.10-101.60 99.20-99.30 area; the trend reversal up will probably happen.

Chinkou-span is above the price, the pair is above the Ichimoku cloud. Tenkan-sen is directed downwards, Kijun-sen is horizontal. Chinkou Span is below the price, the cloud is neutral.

Bollinger Bands still indicate an upward movement. The bands are widening and directed upwards. MACD is located in a positive zone, slightly below its signal line.

Trading recommendations

The support level break down to 102.65 points to a continued downward trend. The main target of a decrease is the support at 102.00.