21, February 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

Yesterday the dollar/yen fell to a level of 93.21, then rose to the resistance 93.93 and went down to 93.50.

The fact that the price jumped from the Ichimoku cloud and went up and down all the day long confirms the uncertainty of the traders.

The Chinkou Span is one the same level with the price, just above the graph. The price was trading all the day above the Ichimoku cloud that’s a sign of the uncertain mood of the market. The fact that the price is above the Kijun 93.23 confirms an upwards movement as well.

Price is still in a prolonged flat.

Bollinger indicator shows the lateral movement, its bands are narrowing. MACD is turned down.

Trading recommendations

It is difficult to understand where the pair will go. The best thing is to wait until we are 100% sure in its direction.

We have two scenarios for today.
1. If the price moves up it will go to the tested level 93.93. The next target is the resistance zone 94.65.

2. The price can go down as well. It will be possible if MACD turns down. The downward movement is likely to go to the bottom of the Ichimoku cloud. If the price breaks through it, it will go to the level 92.17.