4-hour timeframe
Overview:
According to the analysis of the yen on Forex market, the upside movement can be finished soon, at least we cannot trade up now due to the fixation of the price below the Kijun-sen. 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 78.05 – the first resistance level, however we should wait until the price fixates above the Kijun-sen to resume buying. If this level is passed the second target will be the second resistance level at 78.44. Upside movement remains while the price is above the Kijun-sen (77.70); at the moment the price is below it. The Chinkou Span is above the price graph, which confirms the buy sell signal and indicates bullish sentiment. The Bollinger bands show possible ending of the upside movement, the lines are narrowing and directed up, therefore it is recommended to consider long positions and be ready for a reverse of the trend. The MACD is descending, which indicates current downside movement, therefore we should not open buy positions yet, in case the correction ends which will be shown by the MACD reversing up, we can consider long positions again.
Trading recommendations:
Currently it is recommended to wait until the price fixates above the Kijun-sen and trade up with target at 78.05 and further to 78.44. Stop Loss should be placed below 77.70. The MACD should signal about local upside movement for long positions opening.
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.