By Forex Signs, Inc.
After spiking up at 83.75 levels from the 83.08 levels, which is approximately 67 pips up, the USDJPY this time is taking its chances in a bearish trend channel. For today’s American session, the USDJPY along with the simple MA (50) at M30 time frame is observed to move within the consolidation, while the RSI (14) is also viewed to stay behind the neutral position. However, by shifting at the H4 time frame, the MACD (10, 26, 9) is still seen to stimulate a probable selling opportunity for the upcoming light trading. For the moment, a hold/ sell position is applicable for the current movement of the USDJPY pair, anticipation for a bearish opportunity with the pair’s continuing downtrend pattern for the upcoming trading session is still foreseeable.
After consolidating between the resistance level at 83.40 and support level at 83.08 yesterday, the USDJPY this time is anticipated to move in a bearish trend channel with the simple MA (14) at H1 time frame, moves towards the downtrend channel. Meanwhile, the MACD (12, 26, 9) of the 4-hour chart is starting to show signs of a consolidation at the moment, as the signal line closes its gap with the MACD line. But the anticipation for a probable selling proposal in the upcoming light trading is still visible with the RSI, which still lean upon the neutral position. For the moment, a hold position is seen to be applicable for the current movement of the USDJPY, and anticipation for a bearish opportunity with the pair heading towards the downtrend for the upcoming trading session is still foreseeable.
American Session Outlook
After a hike at 22.5 in the Philly Fed Manufacturing Index and a drop at 9.13 percent from the previous 9.85 percent in the Mortgage Delinquencies, the greenback has seen to move along the bullish trend channel from 83.08 to 83.75 levels yesterday.
As of today’s American session, the greenback is suspected to play along the bearish trend channel as the Federal Reserve Chairman Ben Bernanke is anticipated to be released later.
As head of the central bank, his public engagement at the European Central, in Frankfurt is projected to deliver the overall market to adjustment for this earnestly focus on the future position of the key interest rates that could possibly drive the money supply and inflation rate to a foreseeable alteration.
Momentarily, this engagement is considered to be the primary driver of the greenback in the consecutive events; overall bias may still take chances in bearish trend but light trading is assumed to fall along the consolidation pattern.
About the Author
Forex Signs, Inc., Founded in 2006 in Wall Street, New York City, FSI relentlessly strives to be the premier Forex brokerage company in the industry by providing exclusive and unmatched trading and investment related services while constantly developing innovative solutions that cater to the vast requirements of both individual and institutional market participants.
