FX.co ★ The technical analysis of the USD/JPY for 13.07 – 17.07

Day timeframe

Ishimoku:

According to the graphics, we can see the start of downturn movement. The price stood below Tenkan-sen and Kidjun-sen, signaling about descending movement, the purchase sign has canceled, instead of it formed the sale sign. The both lines are down-directed showing the up-going trend. The price stood below the Ishimoku cloud affriming the downside motion. In case, Tenkan-sen ticks up, it is recommended to cut the short positions. Currently, the Tenkan-sen and Kidjun-sen lines are the near term resistance levels alongside with Ishimoku cloud bounds. Ishimoku cloud has also changed its direction and formed the sale sign due to the Senkou Span A and Senkou Span B cross-cut. However, Chinkou Span is above the price graph, in case it crosses the price it will be the sale sign confirmation. That is why, the most problable is seen the down-going tendency, the price is around the bottom Bollinger band approving the descending trend. A pullback to the Tenkan-sen range is possible.

Bollinger Bands:

This indicator shows the top-down movement. The lines are narrowing and down-directed. As we can see, the price jumped from the middle Bollinger band and broke through the bottom line. In the nearest future is seen the further downward motion. The first alarm of signal weakening will be a removal from the bottom Bollinger band.

MACD:

This indicator demonstrates the descending movementm, which is affirmed by the sale sign from Ishimoku. For now, the most probable events scenario — is the dowside trend continuation.

Trading recommendations:

The downward move continuation is possible with the USD/JPY currency pair. So, it is recommended to increase the short positions until one of the indicators cancels the sale signal. In case of a price remove from the bottom Bollinger band, there is a possibility of testing the Tenkan-sen. In case of a MACD reversal it is better to reduce the short positions.

The picture clarification

Ishimoku indicator:

Tenkan-sen — red line
Kidjun-sen — blue line
Senkou Span A — light brown stipple line
Senkou Span B — light purple stipple line
Chinkou Span — green line

Bollinger Bands indicator:

3 yellow lines

MACD indicator:

The red line and the histogram with the white bars in the indicators window

Have a good trading

July 13, 2009

Stanislav Polianskiy