IFC Markets - Analytics

    IFC Markets

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    Technical Analysis USDJPY : 2015-05-25

    Dollar is strengthening

    Let us consider the USD/JPY currency pair on the H4 chart. The price is shaping a flag pattern and may breach the resistance line at 121.789. Parabolic confirms the uptrend and marks the global bullish momentum of the American dollar. The driving factors are FRS chair conference and unresolved Greek debt issue. To note, CPI data were released in the USA on Friday. The indicator outstripped forecasts, making rate hike more likely. The Donchian channel incline doesn't contradict the trend. The flag pattern will probably aim to the green zone. RSI-bars assures other signals: Its bars broke out the trend resistance line.


    The bearish momentum is expected to continue as the 121.789 mark is crossed. The breakout will likely to bring about a movement, which range will be determined by the flag height, i.e. 80-100 points. Conservative traders are recommended to pay attention to RSI-Bars oscillator. The major trend agrees with the price consolidation. To be sure about the market direction we propose to wait until the 75% mark is breached. A stop loss may be placed at the support line, confirmed by the Donchian lower boundary and the trend line, - 120.620. After pending order activation the Stop loss is supposed to be moved every four hours near the next low, following parabolic signals. Thus we are changing the probable profit/loss ratio to the breakeven point.


    Position Buy
    Buy stop above 121.789
    Stop loss below 120.620

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