25, November 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The yen has fallen dramatically, and USDJPY has exceeded the 101 for the first time since July 10 - after the announcement of the results of the two-day meeting of the Bank of Japan, which has kept unchanged stance of monetary policy and the assessment of the economy. The central bank said that the economic recovery was moderate with an increase in exports, investment companies and the state. investment. The Central Bank intends to continue to head for the qualitative and quantitative easing monetary policy to ensure access to the inflation target of 2% per annum. The new plan of the pension fund of Japan to redistribute risk assets supported weakening of the yen.

The pair broke the resistance 100.87, and if there is the stable consolidation above it, there will be the continuation of the growth to test the high 103.75. In this case the mark 100.60 is likely to serve as a support in the future.

There is a strong and confirmed buy signal, as the chart is consolidated below Chinkou span, and the Ichimoku cloud is below the price. Tenkan-sen and Kijun-sen are directed upwards. Chinkou Span is below the price, the cloud is growing. Tenkan-Sen and Kijun-sen are horizontal

Bollinger Bands indicates the change of the trend. The bands are widening and are going upwards.
The MACD is in a positive area right now. The histogram is decreasing.

Trading recommendations

We can see the correction pullback to the nearest support level 101.00 – 100.85. The consecutive trend growth with the upbeat of the 101.50 level is expected.