26, February 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The pair still cannot resume a growth, but risks remain bullish and we expect an uptrend to test the maximum 105.40. The breakthrough and the consolidation below 100.00 remove completely positive expectations, signaling the transition to a long-term correction.

The pair rolled away from the support level 101.65 and consolidated on it in a lateral movement.
There is a confirmed and strong buy signal. Chinkou Span is below the price, the price is above the Ichimoku cloud. Kijun-sen and Tenkan-sen are horizontal. The Cloud is growing as well.

Bollinger Bands indicator shows a lateral movement as its bands are expanded and directed aside. MACD is growing, showing a buy signal.

Trading recommendations

The third week in a row the price cannot break above the resistance level 102.65.
It will be rather difficult to break up the level 102.65. Several false retests will lead to a rebound to the lower boundary of the rising channel 101.80