15, November 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

Strong technical resistance levels near the psychological 100.00 stopped the pair and provoked a decline at yesterday's session. The dollar suffered slight losses against the yen and closed the day down. In today's trading, the dollar resumed growth and has leveled all the losses. This can probably be attributed to the growth of the Japanese stock market and the publication of GDP data for the third quarter with better than expected results. In general, we can expect a trading in a range, the range boundaries are 98.90-100.00.

There is a strong and confirmed buy signal, as the chart is consolidated below Chinkou span, and the Ichimoku cloud is below the price. Tenkan-sen and Kijun-sen are directed upwards. Chinkou Span is below the price, the cloud is growing. Tenkan-Sen and Kijun-sen are directed upwards

Bollinger Bands indicates the change of the trend. The bands are widening and are going upwards .
The MACD is in a positive area right now. The histogram is decreasing.

Trading recommendations

We can assume that there will be a rebound soon from 99.70 down to the nearest support level 99.30, with a possible retest of 99.00.

How strong the downtrend is we can assume after the price breaks 99.00. If it suceedse to break down the way to the rising trend line 98.00 will be opened.