18, October 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

On Wednesday the U.S. dollar strengthened after Washington came to an agreement with its debt problem.

The minor support at 97.60 is untouched; the rebound from 96.56 is still expected. The bulls are targeted to 100.61, the pair can go even higher. On the other hand, there can be a turn below 97.60. In general, the pair is still limited in consolidation after the decline from 103.73 and another trading range is not visible.

The price could fix below Chinkou-span, the Ichimoku cloud is lower than the price, the buy signal is strong and confirmed.

The upward movement will remain if the price stays above 98.36.

Bollinger Bands indicator shows the continuation of an upward movement. The current correction movement is confirmed by MACD, which is turned down.

Trading recommendations

If the price breaks above 98.62 and gets out of the side corridor, the chances of an upward movement will rise sharply. The resistance levels 99.02 and 99.32 will perform as potential targets.