31, July 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

The fact that the pair has been supported by the New York above yesterday's low at 97.63, encouraged some traders to test highs in Tokyo. But the upward movement may be limited at 98.50 by the meeting of the Federal Reserve and key economic indicators in the U.S. later this week. We recomend selling after a growth although the volume is not high enough to develop a one-way trend.

After a brief consolidation along the line Tenkan-sen was broken through and the pair began to fall. Falling the price broke and Kijun-sen, the upper limit of the clouds, the line Senkou Span B, and continued to decline within the cloud on a day chart.

The immediate support for the market can serve as a lower limit of the cloud, the line Senkou Span A, and then the 96.55 level. Kijun-Sen and Tenkan-Sen are crossed forming a "golden cross." However, both trend lines are moving up rapidly towards each other. Cloud is falling.

Location prices in the cloud indicates the general character of the lateral movement of the market. The

Chinkou Span is below the price, which confirms the current sell signal and indicates a bearish market sentiment of the pair.

Bollinger Bands follow the price down. The indicator shows a high volatility.
MACD is declining.

Trading Recommendations

Developments in the dollar / yen takes a gloomy character for the bulls, in particular how the pair completed the last week and the loss of close 98.15/20 supports, gives grounds to say that the risks of further fall prevail.

We believe that the dollar / yen can fall to the support 97.65/96.75 in the near future, where the lower limit of the Ichimoku cloud is located.