FX.co ★ Technical analysis of the currency pair USD/JPY for 06.07 – 10.07

Daily timeframe.

Ishimoku:
On the basis of the hystogram it\'s more likely that the upward trend is over and the downward one has started in the nearest future. The price is below Tenkan-sen and Kijun-sen that seems to signal about the downward motion but purchase\'s signal has cancelled, the purchase signal formed instead of it. The both lines down-directed, signaling about the downward movement. The price successfully stood below Ishimoku indicator that also confirmed the moving down. In case, Tenkan-sen turns up it is recommended to cut the short positions. Tenkan-sen and Kijun-sen lines are the nearest resistance levels at this moment in parallel with the Ishimoku lines. Ishimoku indicator also changed its direction and formed a purchase signal with the help of Senkou Span A and Senkou Span B cross-cut. Chinkou Span however is above and in case it crosses with the price, it will be a purchase signal. In general, there is a tendency of trend changing and more likely variant is downward motion. In case, the price returns to the Ishimoku range then a sideways movement is expected within this zone. So, the most likely is the downward trend continuation with the first target — the low Bollinger band, thereafter, in case of breaking through this line, the downward motion will continue.

Bollinger Bands:
This indicator also shows us a sideway moving. The bands narrowed and directed sideways. As we can see, the price ticked up from the middle Bollinger band approving a possible downward trend continuation. If the price fixes above a middle Bollinger band, then possibly the price will reach the upper line in its movement. In the nearest time the sideways motion is possible within Bollinger band zone, at breaking through of which the trend movement will start.

MACD:
This index shows a sideways movement at this moment — and a signal line and a hystogram neither increase nor decline. As it was said above, there is a big possibility of the float, so you have to wait for the trend beginning.

Explanations to the illustration:
Ishimoku indicator:
Tenkan-sen — a red line
Kijun-sen — a blue line
Senkou Span A - light — brown dotted line
Senkou Span B — light — purple dotted line
Chinkou Span — a green line

Bollinger bands indicator:
3 yellow lines

Indicator MACD:
A red line and a hystogram with white bars in the indicator\'s windows.

Have a good trading.
06 July, 2009
Stanislav Polyanskiy.