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USD/JPY Daily Analysis for August 06, 2013
Daily chart: The USDJPY is turning bearish in this chart, because this was met with strong resistance at the 99.81 level. Now, this pair is trying to break the support at the 97.59 level and if it succeeds, would be expected to fall to the level of 96.38. On the other hand, if the USDJPY consolidates above the resistance level at 98.25, would be expected to rise to the level of 99.81. It is very likely that this pair remains bearish this week, due to the weakness of the U.S. dollar in recent days. The MACD indicator remains in negative territory, but showing some weakness in the current trend.
H4 chart: The USDJPY found resistance at the 99.93 level and quickly, it fell below the 200 day moving average, which could be a clear sign that this pair will begin to strengthen its current bearish trend. If this pair does break the support at the level of 97.65, it’s expected to drop to the level of 97.00. On the other hand, if the USDJPY managed to break the resistance at 98.25 level, would be expected to rise to the level of 99.05. The bearish trend is still going strong in this chart, so we must be alert to any formation of a bearish pattern. The MACD indicator remains in negative territory.
H1 chart: This pair continues to consolidate below the 200 day moving average and below the Point of Control (POC) near the 98.55 level, which would favor a bearish trend in this pair for today’s session. Now, the USDJPY is forming a higher low pattern and if this pair does break the support at the level of 98.04, it’s expected to drop to the level of 97.64. On the other hand, if the pair manages to break the resistance at 98.38 level, would be expected to rise to the level of 98.85, close to the SMA 200. The MACD indicator is in neutral territory, so we must be cautious.
Fundamental outlook: For today’s session, will be published the Trade Balance (Previous: -45.0B / Forecast: -43.1B) at 12:30 GMT in the United States.
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 98.04, take profit is at 97.64, and stop loss is at 98.46.
Source: www.instaforex.com
