27, June 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

Analyzing the yen we can see that the price has formed a "golden cross" being traded above the Ichimoku cloud.

The current buy signal is confirmed and weak as Chinkou Span is above the price, and the price is in the Ichimoku cloud. So now the goal for the upward movement is the Senkou Span B line, which has already worked out. In the case of overcoming the first target, the upward movement will be continued to the resistance level 98.90.

The upward movement will be relevant as long as the price is above Kijun-sen, if the yen consolidates below the Kijun-sen, the "golden cross" will be weakened and the downward movement may resume to the first level of support 92.16.

Chinkou Span is above the price, which confirms the current buy signal and indicates bullish market sentiment for the pair.

Bollinger Bands show a continuation of the upward movement, the band geared up and broadening, making relevant long positions in the market now.

MACD is directed up, confirming the current uptrend. If the price rebounds from the cloud top or resistance level 97.64, it could also signal the beginning of a downward correction.

Trading Recommendations

The technical analysis shows the preservation of a bearish sentiment in the market, as the pair failed to go above 98.80. The pair needs a break below 97.24 to return the bearish trend, that break will aim the pair to the last bearish failure 96.95.