18, December 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The yen grew amid falling of the Japanese stock market - Nikkei fell by 1.6% on Monday. The pair was impacted by a reduced manufacturing PMI in China as well. HSBC Flash Manufacturing PMI fell in December to the lowest level 50.5 p. for the past three months and from 50.8 p. in November, while everyone waited for its growth. At the same time, Tankan Large Manufacturing Index grew up for the fourth quarter to the highest level since December 2007.

Chinkou-span is above the price, the pair is above the Ichimoku cloud. Tenkan-sen is directed downwards crossing Kijun-sen. Chinkou Span is below the price, the cloud is neutral.

Bollinger Bands still indicate a lateral movement. The bands are widening and directed aside. MACD is in a positive zone, slightly below its signal line.

Trading recommendations

Trading volumes show that purchasing power becomes weaker. In addition there is no activity on the part of sellers.
We believe that the approach to the rising trend line 102.75 will be followed by a rebound up to the resistance 103.40 or 103.80.