21, January 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The yen fell after a government report showed an increase in the balance of payments deficit to a record high in November. The head of the Japanese Bank Haruhiko Kuroda said that the Central Bank would continue easing policy until prices stabilize and stimulating program begins to bear fruit.

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

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 rebound from the downward trend line 104.90 was accompanied by a decrease in rates with the further moving to a consolidation. It is likely that this consolidation will be a signal for correcting recoil to the downward trend line 104.70. If there is a temporary stop at the level 104.70, the rebound to a strong support level 103.90 may happen.