15, January 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The Japanese yen continued to strengthen across the front and on Tuesday trading. Obviously, the market kept a desire to return to the shelter which is the yen provoked to strengthen weak data on U.S. employment.

The pair got support at the 50-day SMA, but risks remain bearish and we expect that the pair will fall to 102.00. The upward trend reversal may occur in the range of 102.00-103.00 and the pair will again focus on a growth above the high 105.40 towards 110.70.

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 is directed upwards and Kijun-sen is horizontal.

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 trading week began with a confident breakthrough of a sloping support line 103.60. The breakthrough was on an increased volumes - it is a good signal for the downward trend to 102.90. Today we expect the pair to work out 103.45.