23, May 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The Bank of Japan soft monetary policy remained unchanged. The policy aims to overcome deflation and ensure 2% inflation in two years.

The government announced that the economy started to recover.

The latest data showed that taking into account the correction for inflation, in the first quarter Japan's GDP could grow at an annual rate of 3.5% having left far behind others developed countries. Thereby Shinzo Abe's policy brings results.
The price is above the Kijun-Sen and Tenkan-Sen, Kijun-Sen line is going up, the cloud has a growing shape. The buy signal is strong and confirmed.

The upward movement will be in force until the price is above the Kijun-sen, if the price is fixed below the Kijun-Sen that will weaken or cancel the buy signal.

Bollinger Bands are broadening.
MACD continues to grow.

Trading recommendations

The pair continues to consolidate between support level 102.00 and the last Friday maximum 103.32. The structure of the upward trend will remain unchanged until the pair holds the last week minimum 101.25.

Bulls set their sights on the level 103.65.