28, February 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

As we did not expect any news yesterday the trading was calm and steady. Let's see what will be today.

The pair slowly continues moving down. To say the truth it looks like aside movement more than a downtrend.

The sell signal is strong and confirmed. The Chinkou Span is below the price, and the price is below the Ichimoku cloud and below the Kijun-sen as well.

The price is firmly entrenched under the cloud. We believe that the falling will continue.

The target of the downward movement is the level 90.95. This level was tested, but had not worked out. Should the price consolidate at this level the pair continues to move to 90.04.

Bollinger Bands is going down indicating the bearish mood of 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 as well.