4-hour timeframe
Overview:
According to the analysis of the yen on Forex market, the upside correction might become a trend movement; the new buy signal “Golden cross” was formed, however it is quite weak. The signal is weak and confirmed, since the Chinkou Span fixated above the price graph and the price is below the Ichimoku cloud. At the moment the first target of the upside movement is 77.32 – the first resistance level, however it is recommended to use this target for buying after the price fixates above the Ichimoku Cloud. If this level is passed the second target will be the second resistance level at 77.69. Upside movement remains while the price is above the Kijun-sen (76.95). The Chinkou Span is above the price graph, which confirms the buy signal and indicates bullish sentiment. The Bollinger bands show the beginning of the upside movement, the lines diverging and directed up, which denotes possible upside trend movement; in general it is recommended to consider buying. The MACD is descending, which indicates current correction, therefore it is not recommended to enter the market until the Ichimoku Cloud is passed.
Trading recommendations:
Currently it is recommended to wait until the price fixates above the Ichimoku Cloud and consider buying with target at 77.32 and further to 77.69. Stop Loss should be placed below 76.95. Take profit should be placed at 77.30 and 77.65.
In addition to technical image, one should take into account the fundamental data and the time of their release.
Chart annotation:
Ichimoku 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 white bars in the indicators window.
