29, January 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

After analyzing the market it is clear that the price continues to work a buy signal however MACD shows a corrective movement. The current buy signal is confirmed and strong as Chinkou Span is above the price chart and the price is above the Ichimoku cloud. The upward trend moves to the first resistance level – 92.03.

If the price overcomes this level the upward movement will continue to the second resistance level – 93.18. Upward movement will be relevant as long as the price is above the critical line Kijun-sen (89.65). If the price fixes below this line it will question the further upward movement and the "golden cross", in its turn, will weaken. Chinkou Span is above the price chart that confirms the current signal confirming the bullish mood of the market.

Bollinger Bands are showing an upward movement, the bands are narrow (due to the correction) and directed upwards. We recommend you to open long positions to buy.

MACD is going down indicating that the current movement is just a correction. The long positions will become relevant again after the correction. If MACD turns up that may become a signal for an upward movement. If the price bounces from 90.04 pivot level it may also provoke the resumption of the uptrend.

Trading recommendations

We advise you to open buy positions. The first target is 92.03. When the price fixes above the long positions to the level 93.18 will be relevant. It is better to place stop loss below 89.65 and with the increase of the line also move it up.

Another signal to open a long position will appear when MACD turns up or the price bounces from 90.04 pivot level and Kijun-sen.

After gaining the profit 30 - 40 points stop loss can be moved when the price breakevens. Take-profit can be set at around 91.95 and 93.10.