29, May 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

According to Sean Callow from Westpac USD/JPY shows signs of rapid correction. The initial purpose of the pair is 100.00, it will be 98.00 in a month.

The price is being traded above the Kijun-Sen and Tenkan-Sen, Kijun-Sen is horizontal, 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.

Bands Bollinger Bands are expanding and are turning down, signaling a downward direction.
MACD began to fall.

Trading recommendations

More and more traders believe that the yen is finally able to show a more pronounced correction. The Barclays notes that the signals on the weekly charts give reason to expect some consolidation in the nearest future. The bank also advised to use the attempt of the pair to grow to 103.80 to go short with the targets at 99.95 and 98.85.