14, October 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

Nikkei Stock Average rose more than 1 percent to 1.5-week high on Friday, while the yen retreated from a recent high.

Nikkei stock average rose 1.3 percent to 14 375.02, the highest level since October 2.
Just the possibility of finding solution of the USA crisis caused the closing of positions.

The current buy signal is confirmed and strong, as Chinkou span is above the price graph and the price is above the Ishimoku cloud.

The upward movement will be relevant until the price is above the critical line Kijun-sen (97.61)

Bollinger bands show a continuation of the upward movement, the lines are directed up and expanding. The MACD is upward confirming the current upward movement

Trading recommendations

The price still may bounce from the downtrend line. Still as the dollar shows a clear strengthening against all currencies, the break of 97.85 may take place today.

For a true trendline breakout the price needs to consolidate above the levels 98.00 - 98.10.