31, May 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

The yen strengthened against the dollar yesterday, the pair reached a week low point - 100.46 and this small setback can become a major correction.

Japan Minister of Economy warned that the continued devaluation could "negatively" affect the yen.

The price is being traded below the Kijun-Sen and Tenkan-Sen, Kijun-Sen line is pointing down, the cloud has a neutral form.

Bands Bollinger Bands formed a side channel.
MACD began to go down.

Trading recommendations

Yesterday's falling came upon the support level 100.46 which stopped the price. Bank of Japan plans to double the money supply in the next two years in order to achieve the inflation target thus it will limit the growth of the yen.

The pair may move in the price channel 102.50 and 100.65, the limits of the channel are Bollinger Bands lines. Should the pair grow our target is 102.10.

Should the pair fall it will go to 100 level which should stop the price.