20, September 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

10-year U.S. Treasuries fell by more than 15 basis points, while the U.S. dollar fell more than 1% against the Japanese yen. In fact, a bit surprising measured pace compared to other currencies is to be expected further losses in the next couple of days. While the Fed will eventually start narrowing their decision to keep the same pace of monthly purchases of bonds should encourage short positions in the pair and traders, buyers will close their positions.

The current sell signal is strong and confirmed, as Chinkou span entrenched below the price and the price is below the Ichimoku cloud

The downward movement will be relevant as long as the price is below the critical Kijun-sen line if the price consolidates above the Kijun-sen, the "dead cross" will be weakened and may be canceled.

Tenkan-Sen and Kijun-Sen are crossed in a descending "dead cross". Kijun-sen is moving in a horizontal direction parallel to the cloud, and the Tenkan-Sen continues to grow. The price is above the cloud. The Cloud is growing.

Bollinger Bands follow the price up. The indicator shows a high volatility.
MACD is in a positive area and is descending.

Trading recommendations

The pair may grow to another intermediate level of resistance 98.70 from which, perhaps, will bounce down to 98.40.