19, February 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

A weak growth of the Japanese economy provoked the rise of the yen versus the dollar yesterday. However, later, the "green" returned all their losses.

The pair resumed its dynamic growth. Its target is to test the maximum 105.40. As a support we have a key area 100.00-100.20.

There is a confirmed and strong buy signal. Chinkou Span is below the price, the price is above the Ichimoku cloud. Kijun-sen is horizontal and Tenkan-sen is directed upwards. The Cloud is neutral.

Bollinger Bands indicator shows a lateral movement as its bands are expanded and directed aside. MACD is growing, showing a buy signal.

Trading recommendations

There has been a rapid rebound from the support level 101.60. This level breakthrough happened at growing volumes. We believe the pair is going to continue the growth towards 103.60. But before that, the price has to break above 103.00.