24, May 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

Yen significantly strengthened its position against the U.S. dollar and the euro on Thursday as the negative trend on the stock markets prompted investors to pay attention to safer assets.

After yesterday's Ben Bernanke's speech some fears about the reduction of monetary stimulus appeared.
Yesterday a weak Chinese data on business activity in the manufacturing sector was published during Asian trading session. As a result, the Japanese stock index Nikkei 225 fell by 7.3%, which is the biggest drop in a single day for the last two years.

The price is below the Kijun-Sen and Tenkan-Sen, Kijun-Sen line is horizontal, the cloud has a growing shape. The buy signal is weak as the pair is in the Cloud.

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 signaling the strength of the current trend.
MACD started lowering.

Trading recommendations

Experts believe that the pair has been overbought. Traders were waiting for a pretext for a correction

If the shares market continues to fall, the dollar will continue to fall in price relative to the yen. But in the long term, the bulls firmly hold their positions. If the price falls below 100, it will not be for a long.

We forecast the price trading in the Cloud, in the range 102.10-100.70.

If the pair breaks through the cloud down, it will go to the 100-th level.