USD/JPY: Ichimoku analysis (Jan. 31)
Daily. The pair declined to the upper limit of the Ichimoku Cloud and is enjoying support of Senkou Span A. However, during the week the bears made several attempts to continue correction deeper inside the Cloud. USD/JPY fell to the levels around 101.80, but is still holding a little higher. The Dead Cross doesn’t give the bears any advantage since Chinkou Span is coming into the oversold territory. Consequently, the correction may soon stop. Strong support is at 101.50.
Chart. Daily USD/JPY
H4. At H4 there’s still the downtrend. Ichimoku Cloud is expanding down, but the Tenkan and Kijun have crossed several times in the recent days and currently have almost identical values (C). This means that the market is becoming sideways. However, it can grow into a downtrend since the Cloud has a bearish tone.
Chart. H4 USD/JPY
Tatyana Norkina, FBS analyst