30, May 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The U.S. consumer confidence index was able to achieve the highest level in May for five years.

After Japanese stock market stabilization and U.S. data pointing to the strengthening of the pair it can reach new multi-year high point near 104.

The price is being traded below the Kijun-Sen and Tenkan-Sen, Kijun-Sen and Tenkan-Sen are directed down. The buy signal is weak as the price is below 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 correction.
MACD began to grow.

Trading recommendations

Recovering the pair faced with a rollback. We recommend going long above 101.3, which is also the level of support for the pair. As an alternative scenario the pair can continue falling to the support levels 100.85 and 100.55.