19, February 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

As we can see the week started with a small gap and a flat. The situation has not changed during the day the pair was not active at all. The pair stuck at the level 93.93. The buy signal is strong as the price is above the Chinkou Span and the Ichimoku cloud.

We strongly believe that the upward movement will be continued. If the price consolidates over 93.93 it will continue growing.

Bollinger Bands are broadening; its lines are going up. That’s another confirmation of the upward moving. .

MACD is up as well. That’s another good sign of growing.

Trading recommendations

Our short term forecast- stay out of the market. It is better not to open anything until the pair sets its mind. Right now it can move in both ways: up or down. If the price goes down that might be a correction. If the price continues to grow that may become an upward movement.

If the price goes up the first target will be 94.65. Should the price overcome this level it might go upper to 95.98.

Apart from the technical picture it is necessary to consider the fundamental data and the time of its release.