20, December 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The Fed's decision to begin reducing incentive programs most heavily pressured the Japanese yen. The yen fell to new lows against the dollar and was under pressure from the euro and the pound.

The pair seeks to gain a foothold above the range 103.75-104.00. If it succeeds it will continue to grow to a potential target in the area 110.70. The immediate goal may be a mark 105.00.

The sell signal is cancelled. We have a confirmed and strong buy signal. Chinkou Span below the price, the price is above the Ichimoku cloud.

Northern movement remains until the price is above the line Kijun-sen. Tenkan-sen and Kijun-sen are growing.

Bollinger bands show the upward movement continuation.

MACD histogram crossed the zero line upwards, giving a signal to buy.

Trading recommendations

The breakthrough of a sloping resistance line 103.90 is a good for a growth continuation, entering the market on pullbacks. Just now we can see a corrective pullback to 103.90 sloping support line. Should the pair break this level it may grow higher setting new high marks at 104.40.