16, October 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The dollar was weaker against the yen though it returned the losses later and closed the gap after the new hopes that U.S. policymakers may closer the fiscal deadlock that paralyze the country. Conversations between the White House and Congress remained unresolved, the two sides were unable to agree on a short-term increase in the debt ceiling. The Government has been shutdown for three weeks.

Bollinger bands still show a continuation of the upward movement, the lines are directed up and expanding. The MACD is directed upward confirming the current upward movement

Trading recommendations

The price growth comes in the direction of the rising trend line, which is a corrective pullback from resistance level of 98.70 at the moment. If this correction does not breakthrough the rising trend line, it will rebound with a subsequent retest of 98.70. In case the mark up 98.70 is broken the way to 99.00 and 99.30 marks will be opened.