4-hour timeframe
Overview:
The flat is observed on the yen. At present the movement is sideways, which is confirmed by the Bollinger Bands. The current signal is weak and confirmed, as the price is above the Ishimoku Cloud and the Chinkou Span is below the price graph. Also, most probably the current signal is false. Anyway, it is not recommended to trade until Bollinger bands start to diverge. If the Bollinger bands diverge down, then the first target will be the first support level of 83.19. In case this level is passed the next target will be the second support level of 82.28. The Chinkou Span is below the price graph, which means the bearish sentiment. The Bollinger bands show the downside movement, the lines are not diverging and directed sideways, which can be indicated as flat. MACD is descending, thus pointing to the current downside movement within the bounds of sideways channel.
Trading recommendations:
Currently it is recommended to wait until the Bollinger Bands start to diverge. It is not advisable to trade in flat. If the downwards movement starts the first target will be 83.19.
In addition to technical image, one should take into account the fundamental data and the time of their release.
The chart annotation:
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
