FX.co ★ Ichimoku cloud indicator Daily analysis of USDJPY

USDJPY has provided us with another bearish signal in the Daily chart by breaking below the Daily Kumo. Price is now bouncing again towards the Kumo and it is important to see if price gets rejected or re-enters the cloud.

USDJPY is in bearish daily trend. Price is below both the tenkan- and kijun-sen indicators and most importantly price is below the Kumo (cloud). Price is back testing the cloud which is now resistance. If price gets rejected and the tenkan-sen (red line indicator) crosses below the kijun-sen (yellow line indicator) we will get a confirmed bearish signal by the indicator. The Chikou span has already broken below the candlesticks and is challenging cloud support. 108 is key support and the area of 108.80-109.10 is key resistance. Trade accordingly.