23, January 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

Yen weakened in the first half of the day amid the Asian stock markets growth after the infusion liquidity weakening by Bank of China (PBC) in the country's financial sector. The Japanese Nikkei 225 grew on Tuesday by 1%. The NSC gave additional liquidity to the leading commercial banks of China to prevent a possible cash shortage during the celebration of the lunar New year. At the American session the yen offset some losses amid the US stock market negative dynamics.

There is a confirmed and weak sell signal. Chinkou Span is above the price, the price is above the Ichimoku cloud. The southern movement remains until the price is below the Kijun-sen. Kijun-sen is crossing Tenkan-sen upwards.

Bollinger Bands indicator shows that a downward movement as its bands are expanded and directed downwards. MACD is decreasing, showing a sell signal.

Trading recommendations

The “bulls” perseverance on the dollar may be completed after a maximums breakdown to 105.43–106.00. The bears need to push the dollar lower the level 104.00 to weaken the “bulls” position.