30, January 2014

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The dollar rose slightly versus the Japanese yen having continued the recovery after last week falling. Probably, technical factors like strong levels of support for the dollar/yen prompted investors to fix profit. Besides there were other reasons for the Japanese currency sales, they are the need to be cautious in view of the imminent completion of the Fed meeting, as well as a small return to growth of the desire to risk.

The pair resumed its growth, the target is still a break above the maximum 105.40, and if is successful, a road for testing of the resistance 110.70 will be opened again. As the nearest support will be an area of the level 102.00. Only sustainable fixing below it will cancel the positive expectations and give a signal to of further decrease in the area of support 101.00–101.20.

There is a confirmed and strong sell signal. Chinkou Span is below the price, the price is below the Ichimoku cloud. The southern movement remains until the price is below the Kijun-sen. Kijun-sen and Tenkan-sen are horizontal.

Bollinger Bands indicator shows that a downward movement as its bands are expanded and directed downwards. MACD is decreasing, showing a sell signal.

Trading recommendations

The correctional price increase without volumes sooner or later will be stopped at one of the higher resistance levels.

If correctional growth rates stops at 103.50, a potential target of a rebound will be the support level 103.00–102.90. However if the price is able to come to 103.90, forming of a flat in the area of levels 103.90–103.50 will be likely.