21, June 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

Analyzing the yen we can see that the price has increased the "golden cross" and consolidated inside the Ichimoku cloud, and then worked his upper bound.

The current buy signal is confirmed and weak as Chinkou Span is above the price, and the price is in the Ichimoku cloud. So now the goal for the upward movement is the Senkou Span B line, which has already worked out. In the case of overcoming the first target, the upward movement will be continued to the resistance level 101.20.

The upward movement will be relevant as long as the price is above the critical line Kijun-sen, if the yen consolidates below the Kijun-sen, the "golden cross" will be weakened and the downward movement may resume to the first level of support 92.16.

Chinkou Span is above the price, which confirms the current buy signal and indicates bullish market sentiment for the currency pair USD/JPY.

Bollinger Bands show a continuation of the upward movement, the band geared up and broadening, making relevant long positions in the market now.

MACD is directed up, indicating that the current uptrend. If the price rebounds from the cloud top or resistance level 97.64, it could also signal the beginning of a downward correction.

Trading Recommendations

The snatch up 95.80 was the catalyst for a wave of aggressive buying dollar/yen. The dealers have pointed out that in the light of the day before yesterday's signals from the Fed we can expect a resumption of the upward trend from the pair in the nearest future.

The benchmark for the Bulls became the levels 99.50 - 100.50, while the move above them will open the way to 102.50.

Traders pay attention to the levels about 100. Should the pair break 101.30/60 that will confirm resumption of the bullish trend.