4H
General situation:
Analyzing the JPY rate on Forex for March 12 it is evident that having failed to overcome the Ichimoku cloud, the rate rebounded from it forming a new signal for Buy-deals. As a result, the price began the ascending movement due to the new impulse. Thus, the current signal for BUY-deals is confirmed and strong as the Chinkou Span is above the price chart and the price remains above the Ichimoku Cloud. Therefore, the targets for the upside movement are seen at the first resistance level 83.19. In case this level has been overcome, the next objective will be seen at the second resistance level 83.94. The ascending movement remains the same as long as the pair remains higher than the Kijun-Sen line (81.60). If the price is located below this line, the further elaboration of the Sell-deals signal will be questioned indicating a possible reversal of the price to downside. The Chinkou Span is located above the price chart confirming the current signal for Buy-deals and reflecting the bullish mood on the USD/JPY market. Bollinger Bands shows the ascending movement; lines are expanded and directed upwards. Thus, at the moment the long positions are considered as relevant. MACD is directed upwards reflecting the current ascending movement. Therefore, it is already possible to open and support the long positions. But in case MACD reverses to downwards (this can happen while the closure of the current candle), this will be considered as the signal for the beginning of the possible correction.
Trading recommendations:
As to the USD/JPY market, Buy-positions with the target seen at the 83.19 level are recommended. In case this level is passed through, the next objective will be seen at the 83.94 level. Stop Loss is to be placed below the point 81.60. It is possible to reduce the long positions manually in case MACD reverses to downwards. If the price passes 30-40 pips to the required side, Stop Loss can be placed to a non-loss area. Take Profits can be placed approximately at levels 83.10 and 83.85.
Apart from the technical picture it is necessary to consider the fundamental data and the time of its release.
Explanations to the picture:
Ichimoku Indicator:
Tenkan-Sen – red line
Kijun-Sen – blue line
Senkou Span A – light brown dotted line
Senkou Span B – light blue dotted line
Chinkou Span – green line
Senkou Span B – violet dotted line
Bollinger Bands:
3 yellow lines
MACD Indicator:
Red line and the histogram with white bars in the indicators window.
