4-hour timeframe
Overview:
According to the analysis of the yen on Forex market, the upside movement is continuing, therefore long positions are recommended until the correction movement begins. The formed sell signal is strong and confirmed, since the Chinkou Span fixated above the price graph and the price is above the Ichimoku cloud. At the moment the first target is 78.44 – the second resistance level. If this level is passed the second target will be the third resistance level at 79.11. Upside movement remains while the price is above the Kijun-sen (77.60). The Chinkou Span is above the price graph, which confirms the buy sell signal and indicates bullish sentiment. The Bollinger bands show continuing upside movement, the lines are slightly diverging and directed up, therefore it is recommended to consider long positions. The MACD is ascending, which indicates current upside movement, in case the MACD reverses down we should close long positions.
Trading recommendations:
Currently it is recommended to trade up with target at 78.44 and further to 79.11. Stop Loss should be placed below 77.60. It is recommended to cut buy positions after the MACD reverses down.
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.