23.08.201308:24 Forex Analysis & Reviews: USDJPY: Daily analysis for August 23, 2013

Daily chart: The USDJPY broke the resistance at the 98.25 level and now, this is trying to climb to the resistance at the 99.81 level. It is very likely that this bullish trend continue next week, because of the strength he has shown this pair in recent days due to the weakness of the yen in the forex market. However, it is quite possible that the USDJPY has some slight falls, to form a lower high pattern. The MACD indicator is in positive territory, so our bullish outlook for this pair is still alive.

H4 chart: This pair is trying to break the resistance at the 99.05 level and bearish trend lines that are near current levels. If successful, it is expected to go up to the resistance at the 99.88 level. For now, we recommend caution when placing buy orders at the meeting today, because the bullish trend has been very long, so it is very likely that this pair begin making corrective movements, to grab more power and continue uphill. USDJPY stays above the 200 day moving average and the MACD indicator is in positive territory.

H1 chart: In this chart, the USDJPY is very strong in its current bullish trend, so it is very likely that during today's session, the USDJPY continue to rise. However, do not rule out the possibility that the USDJPY breaks the support at the 98.85 level and fall back to the level of 98.38. For now, we recommend just following the current trend (bullish), because this pair remains above the Point of Control (POC) and the 200 day moving average, both very close to the support at the 97.64 level. The MACD indicator is in neutral territory, so we recommend caution.

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USD/JPY pair breaks a bullish candlestick; the resistance level is at 99.42, take profit is at 99.87, and stop loss is at 98.89.