FBS: trade recommendation for USD/JPY
Tatyana Norkina, FBS analyst
Bulls failed to overcome the 104.00 figure. The 5-day consolidation below the price is likely to be over and a bearish correction is on the way. Yesterday the exchange rate slipped to the 103.75/103.80 support. This level will likely be broken to the downside in the nearest future.
Ichimoku. H4 timeframe shows that in the nearest future Tenkan and Kijun lines will form a dead cross: the channel in-between has narrowed, the pair trades below.
On the hourly chart the price remains within the Cloud. Tenkan and Kijun formed a dead cross, Cloud turned bearish. Prices could could break below the Cloud border and fix at the negative territory already on Thursday. In this case bullish capitulation will be confirmed.
Technical levels: support – 103.40, 103.50, 103.75; resistance – 104.00/104.15.
1. Sell — 103.75/103.80; SL — 104.00; TP1 — 103.40; TP2 — 103.10.