17, January 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The Japanese yen remained under pressure at yesterday's auction. The support from the direction of optimism on the Japanese stock market and continued profitability increasing of state “treasuries” helped the pair to grow and to regain some losses.

A break above the maximum 105.40 is not excluded, and if is successful, the growth will be continued in the direction of potential targets in the area of a resistance 110.70.

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

A correctional growth is accompanied by the declining volumes, but it still allowed the price at the moment to consolidate above the crosshair of resistances 104.75. If the dollar continues to strengthen versus the major currencies, the resistance will be broken up. The potential target for a growth is the level 105.40 with a retest 106.00.