28, November 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

USD/JPY started the week with a growth and reached a six-month high at 101.91. The expectations of the quantitative program cutting out supports the pair.

It is assumed that even if the amount of U.S. securities decreases the ultrasoft monetary policy will be saved in Japan. According to Japanese politicians, " Abenomika " has already yielded significant results: a weak yen helped to restore the competitiveness of Japanese goods, the country's GDP is growing and inflation is slowly rising, although it does not reach the target level of 2%.

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.