23, August 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The pair continues to trade in the downtrend. Yesterday the pair grew to the level 98.80. The yen weakening happened due to the decrease of the Nikkei. National economic reports showed a decline in consumer demand according to online stores reports. Still traders did not pay much attention to that thinking that is just a pullback after a sharp rate growth in the previous month.

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

After a small correction down to the line of support we expect the price to continue growing to 98.60. This level is so strong that can lead to a good bounce down. It is even possible a break through a weekly trend line. In this case, the upward trend will be continued to the next resistance levels: 99.15, 99.75.