22, May 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

Earlier this week, the dollar weakened against the Japanese currency. However, after Japan's Finance Minister Akira Amari made some comments on his speech the pair won back some lost positions.

The Minister said that the growth rate was higher than expected, the dollar has its own factors for growth, but Japanese officials would like to slow down the sudden growing.

The dollar grew on rumors that the U.S. government will close the program of buying assets.

The Bank of Japan two day meeting began yesterday. The meeting is dedicated to the monetary policy.

Trading recommendations

We see that the price slowed down the further growth after reaching the top of the channel (resistance line) and after refreshing the five-year maximum. The pair is consolidated in the range 102-103.

MACD began to go down, forming another bearish divergence

The technical picture is ambiguous for the pair. The pair may grow a bit to 103-103.20.

A correction to the level 102.00 and 101.40 is also possible.