26, September 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

Asian stocks has been falling for a second day after U.S. consumer confidence fell in September to a four-month low.

MSCI Asia Pacific Index fell 0.2 percent to 140.23 as in Tokyo, before the opening of the market in Hong Kong and China.

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

We believe that the retest of the rising trend line 98.40 will be accompanied by a good bounce up and with a break of the resistance level 98.70. The break above 98.70 opens the way to 99.00 - 99.20 in the short term. The retest of the resistance level 99.30 is possible.