16, August 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

Yen is growing on the background falling of the Japanese stock index, where investors were upset about the news that Prime Minister Shinzo Abe has not given any indication of the decline of the national corporate tax. Speaker of the government Yosihide Suga and Finance Minister Taro Aso made it clear with their comments that the government may not reduce the corporate tax rate.

Trend Tenkan-Sen and Kijun-Sen are crossed in a descending "dead cross". Kijun-sen is moving in a horizontal direction parallel to the cloud, and the Tenkan-Sen continues to decline. The price is in the cloud. The Cloud is neutral.

Bollinger Bands follow the price up. The indicator shows a high volatility.
MACD left a positive area.

Trading recommendations

With a good amount of the price went up to 97.60 support level. It is possible that the level will be thoroughly tested during the European session, and in the case of a successful breakthrough it will allow short selling to the mark 97.00.

Break of 97.00 support will pave the way for the next potential targets: 96.75.