23, July 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The pair continued lowering on Monday, regardless of the fact that Shinzo Abe, who is prime minister of Japan, won elections with an overwhelming majority. Thereby Abe can control the Parliament to implement his program, including the current radical economic reform.

The upward movement will be relevant as long as the price is above Kijun-sen. The price broke through the Cloud and it is being traded above it right now. The Cloud is neutral.

Chinkou Span is below the price, which confirms the current sell signal and indicates a bearish market sentiment of the pair.

Bollinger Bands show a continuation of the upward movement.
MACD is on the zero level.

Trading Recommendations

The prospects of the pair remain positive as long as it trades above 98.90 support area. At the same time we expect the pair to continue growing above 101.50 minor resistance to high 103.75. Should the pair pass this level it will grow towards 110.00.

Only the break and consolidation below 98.90 will cancel the positive expectations and will open the way to reduce to 93.70.