15, October 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The Japanese yen lost position last week, and the pair jumped up by 130 points. The pair closed the week at 98.57. The calendar of this week is very light, with only two releases to come.

Consumer sentiment and U.S. Initial Jobless Claims were weak, but the yen failed to take advantage of it. U.S. government shutdown continues, but the dollar has not suffered, as the markets seem to be patiently waiting for the politicians in Washington to get the profit.

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 potential target for a possible rebound is the resistance level 98.70. If the price breaks through the level and fixes above 98.70, we expect a further upward tendency to 99.00 - 99.30.