24, April 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

USD/JPY has made another leap to the psychologically important mark 100, reaching 99.89. Like two weeks ago, it has difficulties in breaking the 100 level.

Tom Levinson from ING said that if the pair does not reach 100 until the middle of this week, it will happen on Thursday when Japan is to publish the latest data on inflation.

According to him, if there will not be a clear improvement of the situation in terms of deflationary pressure, it will justify active measures easing of monetary policy by the Bank of Japan. In this case it can cause a sufficient yen selling so that the pair to break this barrier.

The pair is above the Kijun-Sen and the Tenkan-Sen, the Kijun-Sen line is directed upwards, the Cloud resumed its growth.

Bollinger bands began to expand and directed upwards.
The MACD histogram is back in positive zone and is growing.

The indicators confirm the northern movement.

Trading recommendations

We believe that in the short term the pair will be in the flat or continue an upward trend.

The goal of the northern movement is the 100 level, the last time the pair was not able to overcome it. Let's see if it has enough power to do it this time.

One can go long after a steady penetration of 99.30.
We can speak about the sales can only if the pair returns to the Cloud.