27, November 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The yen fell to a nearly 6 – months lasting minimum against dollar after reaching an agreement with Iran on its nuclear program. On the 24th of November after 10 years of negotiations in Geneva an agreement on easing some economic sanctions against Iran was signed, in exchange for a partial suspension of its nuclear program. The head of the Bank in Japan - Haruhiko Kuroda mentioned the progress towards achieving the inflation target of 2% on Monday, although he acknowledged that the plan was very ambitious, taking into account the 15 years of deflation in Japan. Deputy Minister of Finance in Japan declared that deflation in the country comes to an end and economy begins to recover.

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

The volumes of rising rate are gradually decreasing, but due to the fact that the price is steadily moving up the existing capacity would be enough to come up to the next level today, located at around 102.00, retest 102.30.