13.04.201214:42 Forex Analysis & Reviews: USD/JPY Technical Analysis and Trading Recommendations for April 13, 2012

4H

General situation:
Analyzing the USD/JPY rate of Forex on April 13 it is evident, that the price continues the slight descending movement, as frequent corrections still hinder trading. One of them is developing presently. Current signal for Sell-deals is confirmed and strong as Chinkou Span is located below the price chart and the price is fixed below the Ichimoku Cloud. That is why the target for prospect descending movement is seen at the second support level 80.08. In case this level has been overcome, the third support level 78.86 will be seen as target. The descending movement will remain relevant as long as the price is located below the Kijun-Sen (81.20). The rate often rises above this line. In general, the situation is quite controversial for trading. Chinkou Span is located below the price chart confirming the current signal for Sell-deals and indicating the bearish mood on the USD/JPY market. Bollinger Bands indicates the continuation of the descending movement; lines are restricted and directed downwards. That is the reason why currently short positions are relevant. MACD is directed upwards indicating the current corrective movement. That is why it is recommended to refrain from opening short positions but in case MACD reverses to downwards, it will indicate the possible descending trend movement.

Trading recommendations:
On the USD/JPY market it is recommended to consider sell positions with target seen at level 80.08. In case this level is broken through, the next target will be seen at the 78.86 level. Stop Loss is to be placed above 81.20 and as this line goes lower, Stop Loss can be placed down. Short positions with targets listed above are to be opened in case the MACD reverses to upwards. When the price passes 30-40 pips to the required side, Take Profits can be set approximately at 80.20 and 78.95 levels. Presently you should be very cautious as the pair is experiences frequent corrections. Refraining from entering the market is considered as good option.

Apart from the technical picture it is necessary to consider the fundamental data and the time of its release.

Explanations to the picture:
Ichimoku Indicator:
Tenkan-Sen – red line
Kijun-Sen – blue line
Senkou Span A – light brown dotted line
Senkou Span B – light blue dotted line
Chinkou Span – green line
Senkou Span B – violet dotted line
Bollinger Bands:
3 yellow lines
MACD Indicator:
Red line and the histogram with white bars in the indicators window.

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