20, January 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The Japanese currency slightly strengthened versus the dollar. Obviously the reduction of optimism on the Japanese stock market and a renewed decline in yields of “treasuries” led investors to reduce the “bull” activity.

The pair fell slightly, but kept above the level 104.00, therefore an attempt to break above the maximum 105.40 is still not excluded, and if it is successful the growth will be continued in the direction of potential targets in the area of resistance 110.70.

There is a confirmed and strong sell signal. Chinkou Span is above the price, the price is below the Ichimoku cloud. The southern movement remains until the price is below the Kijun-sen. Tenkan-sen is directed upwards and Kijun-sen is horizontal.

Bollinger Bands indicator shows that a downward movement as its bands are expanded and directed downwards. MACD is decreasing, showing a sell signal.

Trading recommendations

The resistance 104.75 stopped a correctional rollback. The rebound from the trend line was in the area of the level 103.80, from which  the growth islikely to happen to the downward trend line 105.00.