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General situation:
Analyzing the JPY rate on Forex for March 13 it is evident that in the course of yesterday’s session the pair has slightly weakened the ascending movement. This fact was immediately reflected by MACD that indicated a correction. Thus, the current signal for Sell-deals is considered as confirmed and strong, as Chinkou Span is located above the price chat and the price remains higher than the Ichimoku Cloud. Therefore, the target for ascending movement is seen at the first resistance level 83.19. In case it has been overcome, the second resistance level 83.94 will be considered as the next target. The ascending movement remains relevant as long as the price is higher than the Kijun-Sen (81.60). In case the price is fixed below this line the further elaboration of the signal for Buy-deals will be questioned indicating a possible reversal of the price to downwards. Chinkou Span is located higher than the price chart, confirming the current signal for Buy-deals and bullish mood at the USD/JPY market. Bollinger Bands indicate the ascending movement; lines are slightly tightened and directed upwards. Thus, long positions are considered as relevant. MACD directed downwards indicating the current corrective movement. Therefore, it is recommended to refrain from opening the long positions. In case MACD reverses to upwards, the signal for possible resumption of the trend movement will be provided.
Trading recommendations:
As to the USD/JPY market, it is recommended to consider Buy-positions with the level 83.19 seen as target. In case this level is passed through, the level 83.94 will be considered as next objective. Stop Loss is to be placed below 81.60. As this line goes upwards, it is possible to place the Stop Loss up. You can open long positions in case the MACD reverses to upwards. When the price passes 30-40 pips to the required side, Stop Loss can be placed to the non-loss area. Take profits can be placed near 83.10 and 83.85 levels.
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.
