empty
04.05.2012 03:00 PM
USD/JPY Technical Analysis and Trading Recommendations for May 4, 2012


This image is no longer relevant

General situation:
Analyzing the USD/JPY on May 4 we can see that the rate is fixed above the Kijun-Sen resulting in formation of buyers signal though quite weak one. This signal does not allow opening long positions. The current signal for Buy-deals is not confirmed and weak, as the Chinkou Span is located above the price chart and the price is below the Ichimoku Cloud. That is why the target for possible ascending movement is seen near the Ichimoku Cloud. In case traders reach this level, the Senkou Span B will be considered as the next target. It is recommended to start bullish trade after the strengthening of the buyers signal, i.e. when the price is fixed above the Ichimoku Cloud. The ascending movement remains relevant as long as the price is located above the Kijun-Sen (80.10). Below this line it is recommended to place the Stop Loss for bullish trade. The signal for Buy-deals will weaken in case the price is fixed below this line. Chinkou Span is lower than the price chart but it does not confirm the current signal for Buy-deals and indicates the bearish mood on the USD/JPY market. Bollinger Bands shows the possible start of the ascending movement; lines are expanding and directed upwards, so long positions are relevant. MACD is directed downwards indicating the current corrective movement. It is recommended to refrain from opening long positions anyway, as the signal for Buy-deals is very weak.

Trading recommendations:
On the USD/JPY market it is recommended to consider buy positions but only when the price is fixed above the Ichimoku Cloud which is far from that. In case the Cloud is passed through, it will be possible to open long positions with 81.23 seen as target. Stop Loss is to be placed below the 80.10 level and while this line goes higher Stop Loss can be placed upwards. While opening long positions MACD should be directed to the upside. When the price passes 30-40 pips to the required side, Stop Loss is to be places into the non-loss area. Take Profits can be set around the 81.15 level.
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 linesMACD Indicator:
Red line and the histogram with white bars in the indicators window.

If you like this article, vote for the author in Analyst of the Year Contest.
My Blog with additional information to the analysis.

Paolo Greco,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

AUD/JPY. Analysis and Forecast

On Tuesday, the AUD/JPY pair showed confident growth, reaching a nearly four-month high following the Reserve Bank of Australia's (RBA) unexpected decision to keep interest rates unchanged. At the same

Irina Yanina 12:41 2025-07-08 UTC+2

Forecast for EUR/USD on July 8, 2025

On Monday, the EUR/USD pair continued a mild downward movement. After reaching the 127.2% retracement level at 1.1712, the pair neither rebounded nor consolidated. Therefore, the 1.1712 level should

Samir Klishi 12:24 2025-07-08 UTC+2

Forecast for GBP/USD on July 8, 2025

On the hourly chart, the GBP/USD pair traded sideways on Monday, and traders began to ignore the 1.3611–1.3633 level. At the moment, we cannot say whether the price is rebounding

Samir Klishi 12:18 2025-07-08 UTC+2

Will Divergence in RSI bring weakness to Crude Oil? Tuesday, July 8, 2025.

Crude Oil – Tuesday, July 8, 2025 The surge in Crude Oil production from OPEC raises concerns about excessive supply flooding the world market and the possibility of weakening global

Arief Makmur 08:59 2025-07-08 UTC+2

Could the weakening that occurred in Fiber be temporary? Tuesday, July 8, 2025.

EUR/USD – Tuesday, July 8, 2025 Data from the Eurozone that is starting to improve and signals of Dovish policy from The Fed provide an opportunity for EUR/USD to strengthen

Arief Makmur 08:59 2025-07-08 UTC+2

EUR/USD Forecast for July 8, 2025

On Monday, the euro declined by 71 pips, testing the support at 1.1692. As anticipated, the price did not attempt to break through the MACD line immediately but chose instead

Laurie Bailey 06:14 2025-07-08 UTC+2

GBP/USD Forecast for July 8, 2025

GBP/USDAmid yesterday's 0.56% rise in the U.S. dollar index, the British pound declined by 0.20% (-51 points). The price moved further away from the 1.3635 level, while the Marlin oscillator

Laurie Bailey 05:56 2025-07-08 UTC+2

AUD/USD Forecast for July 8, 2025

AUD/USDWith support from the U.S. dollar (USDX +0.56%), the Australian currency became the day's top decliner (-0.69%, -61 points), as markets await today's expected Reserve Bank of Australia rate

Laurie Bailey 05:50 2025-07-08 UTC+2

XAU/USD. Analysis, Forecast, and Current Market Situation

Gold is maintaining a bearish intraday tone today.Oscillators on the daily chart are just beginning to show negative momentum, indicating the potential for further declines in the metal's price

Irina Yanina 12:50 2025-07-07 UTC+2

Forecast for EUR/USD on July 7, 2025

On Friday, the EUR/USD pair traded very weakly, with trader activity extremely low due to the U.S. Independence Day. As a result, no trading signals, important breakouts, or other chart

Samir Klishi 11:48 2025-07-07 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.