27, February 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

The general overview

The price collapsed and broke through all resistance levels confusing the whole analysis picture.

And so, what do we have? We have a strong sell signal. The Chinkou Span is below the price chart and the price is below the Ichimoku cloud and the Kijun-sen as well.

If the price is fixed under the cloud, the southern movement will be continued.

The goal of the downward movement is the level 90.95, which was tested, but was not worked out. If the pair consolidates on it the price will go to 90.04.

Bollinger Bands is going down indicating the bearish mood on the market.

MACD is also down, confirming the southern movement.

Trading recommendations

It is recommended to open short positions with the first target 90.95. Having overcome this level the price will go to 90.04.

We place take-profit 5-10 points above our targets. Opening orders we need to consider macro economic news and the time of their release.