Technical analysis USD/JPY 12 March 2013


Technical analysis

The speculations about a possible retrace were confirmed. The level of 96.50/60 stopped the bulls; the price dropped to 95.50/40 but then quickly resumed its growth and the pair was trading at 96.70/80. Obviously, the assumptions that the price should rise to the levels of 97.70/98.00 are being implemented and the trade may soon move to this range. The bullish mood shown by the indicators provides additional proof for these expectations. At the same time, as divergence continues on smaller timeframe oscillators (M30, H1), this calls for caution, signaling a large-scale kickback.



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