14, January 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The Japanese currency spent last week in a narrow side corridor versus the dollar, but finished the session with a convincing growth. Certain propensity to respond actively data on the U.S. economy which on Friday issued a weak statistics on education of new jobs in December helped the Japanese currency to achieve a positive result on results of the week. During the week not much data were published on the Japanese economy and it has no effect on market.

There is a confirmed and strong sell signal. Chinkou Span is above the price, the price is below the Ichimoku cloud. The southern movement remains until the price is below the Kijun-sen. Tenkan-sen and Kijun-sen are directed down.

Bollinger Bands indicator shows that a downward movement as its bands are expanded and directed downwards. MACD is decreasing, showing a sell signal.

Trading recommendations

The reversal of the trend upward could take place on the approach to 102.00, after that the pair will be again focused on growth above the maximum 105.40 in the direction of resistance 110.70.