16, January 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The yen fell after two days of correctional strengthening amid the current account deficit growth in Japan to record levels driven by an increase of import. The fall of the yen to the dollar was the highest for the last three weeks. The current account deficit in Japan in November increased from 127.3 billion yen in October to a record 592.8 billion yen in November, having exceeded the expectations of growth. The New Zealand dollar traded higher after the release of strong business confidence, but by the end of the day lost all the growth amid the dollar strengthening.

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

If consolidation happens in the range 104.65–104.75 it will be a good signal for bounce down and downward trend continuation. The potential goal to a decrease is the support level 104.00–103.90.