28, May 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

Japan and United States credit markets influence the pair.

Japanese financial market activity is causeв by a Bank of Japan stimulation program. Although the authorities try to calm down the markets to avoid a new growth, there is no result.

It is expected two interesting events this week: April publication which can cause a correction due to the introduction of quantitative easing and the Kuroda’s speech where he can comment the pair volatility.

The price is being traded below the Kijun-Sen and Tenkan-Sen, Kijun-Sen is directed upward, the cloud has a growing shape. The buy signal is weak as the price is in the cloud.

The upward movement will be as long as the price is above the Kijun-sen, if the price is fixed below the Kijun-Sen that will weaken or cancel the buy signal.

Trading recommendations

If the shares market continues to fall, the dollar will continue to fall as well. Still the bulls firmly hold their positions. If the price falls below 100, it will not be for a long.

We forecast the price trading in the Cloud, in the range 102.10-100.70.

If the pair breaks through the cloud down, it will go to the 100-th level.