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USDJPY Daily Analysis for August 08, 2013
Daily chart: The USDJPY fell deep below the support at the 97.59 level and this has touched the support at the 96.38 level. It is very likely that this pair begins to form a higher low pattern, to further strengthen its bearish trend. If the pair manages to break that level, it is expected to fall to the level of 94.53, very close to the 200 day moving average. On the other hand, if the pair fails to make a bullish rebound acutales levels are expected to rise to the level of 97.59. The MACD indicator remains in negative territory.
H4 chart: The pair broke the support at the 96.70 level and now, this is forming a higher low pattern. Would be expected to fall to USDJPY support at the level of 95.81. On the other hand, is very likely to achieve USDJPY break of resistance at 96.70 and up again to the level of 97.00. For now, the bearish trend in this pair still remains very strong, because this has become below the 200 day moving average. It would be advisable to wait for this pair finished form this bearish pattern. The MACD indicator is entering extreme oversold levels, but still in negative territory, without showing further weakness in this pair.
H1 chart: In yesterday’s session, the USDJPY managed to break the support at the 97.13 level and is very close to reaching the level of 96.02. If the pair manages to break that level, it is expected to fall to the level of 95.62. On the other hand, if the USDJPY managed to break the resistance at the 97.13 level, would be expected to rise to the level of 97.64. For now, the USDJPY continues to consolidate in its bearish trend and it is very likely that this trend extends for many days due to the weakness that has made this pair. The MACD indicator is in extreme oversold territory and entering positive, so we must be cautious.
Fundamental outlook: For today’s session, will be published the Japanese Monetary Policy Statement, during the asian session in Japan.
Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USD/JPY pair breaks a bearish candlestick; the support level is at 96.02, take profit is at 95.62, and stop loss is at 96.45.
Source: www.instaforex.com
