28, January 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The absence of influential information at the beginning of the last week left the dollar/yen in a side corridor, but at the end of the five-day session the Japanese currency was in wave of purchases and strengthened versus its main opponent.

Purchase of the Japanese yen on Friday relied on the investors’ withdrawal from risk, due to falling on the equity markets, as well as on the continued reduction in yields of U.S. government bonds.

The pair managed to hold above the level 102.00, in connection with that resumption of growth from current levels is likely.

There is a confirmed and strong sell signal. Chinkou Span is below the price, the price is below the Ichimoku cloud. The southern movement remains until the price is below the Kijun-sen. Kijun-sen and Tenkan-sen are horizontal.

Bollinger Bands indicator shows that a downward movement as its bands are expanded and directed downwards. MACD is decreasing, showing a sell signal.

Trading recommendations

It is likely that the beginning of the trading week will begin with a correctional rollback to the resistance 103.00. At this area formation of consolidation with a downward bounce is expected. The main levels of the price falling will be 101.80, 101.00 and 100.65.