22, August 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The USD / JPY is being corrected up, rebounding from the support 97.00. Recently, Kuroda, governor of the Bank of Japan, said that he would not hesitate to adjust the policy if there was a risk of tax on income from sales. Although it may seem premature, but the Japanese government will take meaningful steps to financial discipline, but he does not think that the pace of economic growth will slow down, if the planned sales tax would be raised.

Trend Tenkan-Sen and Kijun-Sen are crossed in a descending "dead cross". Kijun-sen is moving in a horizontal direction parallel to the cloud, and the Tenkan-Sen continues to decline. The price is in the cloud. The Cloud is neutral.

Bollinger Bands follow the price up. The indicator shows a high volatility.
MACD left a positive area.

Trading recommendations

In case of a successful breakout and the price is fixed below 97.00, a potential target will be the support level 95.80 with intermediate levels 96.75 and 96.25.

Alternative variant

Jump from the support level 97.00 will be followed by the correctional pullback up and the target is 97.65 resistance level or the descending trend line 97.80 – 97.90.