29, October 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The growth rate of inflation to 1.1% y/y, which was published on the last trading day of the past week, allowed the pair to fall below 97 figure. Despite the strong inflation data, the last time growth was higher than 1% back in 2008, fuel for the growth of the Japanese currency quickly ended and the "bulls" were able to raise quotes to the level of 97.48. Today, in the event of positive data from the U.S. the pair may continue its growth. For the "bulls" strong resistance is located at 97.60. If this level is broken, the way to 98.45 will be opened.

We can see that Tenkan-sen and Kijun-sen are directed downwards. Chinkou Span is below the price, the cloud is going down now. Tenkan-Sen is directed downwards, Kijun-sen is horizontal.

The upward movement will remain if the price stays above 98.36.

Bollinger Bands indicates the change of the trend being directed down.
The MACD is in a negative area right now.

Trading recommendations

The trading continues within the lower boundary of the symmetrical triangle 97.00. The rebound with a further refund to the upper boundary of the symmetrical triangle is possible.

But before the price turns up, the intermediate trend line break 97.60 should be observed.