FX.co ★ Technical analysis and trading recommendations for the USD/JPY currency pair for January 19, 2010

4-hour timeframe

The whole picture:

The sale signal is working out further with the target at 89.92. The first target of the current movement at 91.33 is reached. The next target is 89.96. Now is recommended to consider only sales. In case of the price strengthening above Kijun-sen, it is recommended to cut short positions, as in this case the sale signal will weaken. Chinkou Span is lower than the price graph that testifies about the downward trend. Bollinger Bands is demonstrating the downward movement, the lines are down-directed and widening that signals about the downward movement continuation. MACD is also giving signals of the downward trend.

Trading recommendations:

It is recommended to sell the currency pair with the target at 89.96 and stop loss is to be above Kijun-sen (91.15).

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 in trading,
Stanislav Polyanskiy
January 19, 2010