22, November 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The data on foreign trade in goods was published from the land of the rising sun. The data came out worse than expected, but the yen has ignored this statistic. Reduction of Nikkei 225 and S & P 500 in the morning added some positive to "bears" who have managed to lower quotes to the level 99.78. However, when the U.S. traders came to the market on the backdrop of rising stock markets, the dollar/yen managed to recover lost ground. In general, the pair is traded in a very narrow range.

There is a strong and confirmed buy signal, as the chart is consolidated below Chinkou span, and the Ichimoku cloud is below the price. Tenkan-sen and Kijun-sen are directed upwards. Chinkou Span is below the price, the cloud is growing. Tenkan-Sen and Kijun-sen are horizontal

Bollinger Bands indicates the change of the trend. The bands are widening and are going upwards.
The MACD is in a positive area right now. The histogram is decreasing.

Trading recommendations

The U.S. dollar is sure to continue to strengthen its position against the major currencies. The Japanese yen was not an exception which is likely to continue its fall against the USD to the levels like 101.02, 101.32, 101.50.