28, 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 strong as Chinkou Span is above the price, and the price is above 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 pair is consolidating between the Wednesday maximum 98.24 and Tuesday minimum 96.95 and soon will break them up. The more extensive recovery from June 13 minimum 93.75 is suspended. A break above 98.24 in the short term again will target the pair to a maximum 98.72. The support 97.23 will protect 96.95, an additional support is at 96.47.