23, September 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

Dow hit a new 52-week high due to the lack of even minimal restrictions from the Federal Reserve to help ease the yen.

As long as the Fed continues to support the Dow and put pressure on Treasury securities, possibly later this year, the shares may go beyond 15,600. The previous high of Dow was in August and was 15,658.

The current sell signal is strong and confirmed, as Chinkou span entrenched below the price and the price is below the Ichimoku cloud.

The downward movement will be relevant as long as the price is below the critical Kijun-sen line if the price consolidates above the Kijun-sen, the "dead cross" will be weakened and may be canceled.

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 grow. The price is below the cloud. The Cloud is growing.

Bollinger Bands follow the price up. The indicator shows a high volatility.
MACD is in a negative area.

Trading recommendations

The upward movement approaches the sloping resistance line 99.77, which is likely to keep short-term bulls. We cannot exclude that the price will bounce down to the support level 99.32 after it approaches the level 99.77.

Should the price break 99.77 we should expect it to grow to the levels of 100.01, 100.16, 100.46.