14, August 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

Japanese stocks rose and the yen fell after the report of Prime Minister Shinzo Abe, who considers corporate tax cuts as a way to offset the impact of a two-stage increase in the sales tax.
Abe tries to stimulate growth and pull out the third-largest economy in the world from 15 years of deflation through fiscal and monetary expansionary policies.

The price is continuing to fall. The current buy signal is strong and confirmed, as Chinkou span entrenched above the price, and the price is above the Ichimoku cloud. So now the goal for the upward movement is the resistance level is 98.90.

Bollinger Bands follow the price up. The indicator shows a high volatility.
MACD left a negative area.

Trading recommendations

Rising volumes are growing apart from the price, which indicates the formation of a possible divergence and the near turn down with a further continuation of the bearish trend. However, if yesterday's break of 97.65 will take up the corrective growth has all the reasons for its continuation. In this case level 98.90 can be the potential target.