17, May 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The Prime Minister began an aggressive program of easing monetary policy. The dollar was trading above 100 yen for the first time in 4 years. This situation is favorable for the economy, for example, Japanese stocks rose to the highest level in the last 5 years.

The price is above the Kijun-Sen and Tenkan-Sen, Kijun-Sen line is going up, the cloud has a growing shape. The buy signal is strong and confirmed.

The upward movement will be in force until the price is above the Kijun-sen, if the price is fixed below the Kijun-Sen that will weaken or cancel the buy signal.

Bollinger Bands are directed upwards and widening indicating a continuation of the growth.
The MACD has stopped growing and began lowering.

Trading recommendations

The pair is being traded around 102.30, the first serious resistance awaits the pair at 102.50 where the part of the applications associated with the option are located.

If the pair breaks this level, it will go to 103.50.