Technical analysis and trading recommendations for the USD/JPY currency pair for March 15 ^2010-03-15

4-hour timeframe

Overview:

A strong ‘buy’ signal is still developing. The price managed to fixate above the pivot level of 90,4165 and above the Ishimoku cloud. Thus, a ‘buy’ signal with a target level of 92,33 strengthened. The current target of the uprising trend is 91.21. At the moment, it is recommended to trade long exactly with this target. If the price is fixed above the price resistance level of 91,21, the next target level will be 91,86. If the price moves below the Kijun-Sen, the ‘buy’ signal will get weak and it will be needed to reduce long positions. The Senkou Span is found higher than the price curve which signals the rising motion. The Bollinger Bands show the increasing movement- the lines are converging and are directed upwards, which signals about a possible ending of the rising movement. MACD is lowering, which denotes a current descending movement.
Trading recommendations:

It is recommended to trade long with the first target 91.21. In case of fixation above the first level of resistance, the target will be 91.86. The stop-loss is placed below Kijun-Sen (90,30).

The picture clarification:

Ishimoku indicator:
Tenkan-sen — red line
Kijun-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.

Good luck,
March 15, 2010
Stanislav Polyanskiy