15, March 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The signal to buy is strong. Yen continues to trade above the Ichimoku cloud.

The price is above the Kijun-Sen and Tenkan-Sen, indicator lines are directed up. That's a very strong bearish pattern.

The Chinkou Span is higher that the price that confirms the current buy signal and indicates a bullish mood of the players.

Bollinger Bands is narrowing. It is recommended to go short.

MACD histogram goes down.

Trading recommendations

The pair continues its growth, consolidating at 96.00.

The pair is trading above the cloud the indicators confirm the upward movement. The first goal of the movement is the level 96.55, which is well tested, but not worked out. Should the pair consolidate at it the price will continue to move to the level 98.80.

Alternative scenario: the pair is overbought and is being traded at its maximums. We have good chances the pair to turn down and make a deep correction to the support line of upward channel - 93.33.