The USD/JPY technical analysis and trading recommendations for March 15, 2011

Overview:
The yen is still demonstrating an uncertain movement; Friday’s price downfall confused the whole current situation. A new sell signal without a target level was formed. The formed signal is strong and confirmed, since the Chinkou Span fixated below the price graph and the price is below the Ichimoku cloud. The first target for the downside movement is 81.22 – the first support level. If this level is passed the second target will be the second support level at 80.62. Downside movement remains while the price is below the Kijun-sen (81.95), if the price fixates above this line it is recommended to cut short positions. The Chinkou Span is below the price graph, which confirms the current sell signal and indicates bearish sentiment. The Bollinger bands show downside movement, the lines are diverging and directed down. The MACD is descending, thus indicating current downside movement, if it reverses up it will denote the beginning of correction movement.


Trading recommendations:
Currently it is recommended to trade down with target at 81.22 and further to 80.62. Stop Loss should be placed above 81.95. If the MACD reverses up it is recommended to cut short positions manually.

http://instaforex.com/forex_analysis/24915/?x=OUE