4-hour timeframe
Overview:
According to the analysis of the yen on Forex market, the yen is still correcting after a growth by over 400 pips on Monday. Nothing has changed during the last few days and thww price is moving in a quite narrow sideways channel. It is also worth mentioning that during a few months after a strong upside move the volatility decreased and the price moves within 50-70 pips during a day. All indicator lines are quite confusing and the movement is obviously a flat one. Therefore we should wait for the movement to stabilize and corresponding signals from indicators to be formed. The Bollinger bands show sideways movement, the lines are not diverging and directed sideways, which indicates the absence of trend and the recommendation to stay out of the market. The MACD is descending, which indicates current local downside movement.
Trading recommendations:
Currently it is recommended to refrain from yen trading due to high-risk unstable movement.
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.