20, February 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The situation has changed since Monday. The pair was in the flat but started to move down. 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 that’s a good confirmation of an upward movement.

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

Trading recommendations

Our short term forecast- stay out of the market. If the pair enters the cloud it will continue going down to its lower boundary. Another scenario - the pair pullbacks from the cloud and continues its growing.

If the price goes up the first target will be 93.93. Should the price overcome this level it might go upper to 94.65.

If the price goes down it will go to the lower boundary of the cloud.

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