FBS: trading recommendation for USD/JPY
Tatiana Norkina, FBS analyst
Japanese yen has weakened versus American dollar. The bulls have once again become active. Yesterday the prices held above the 104.00 handle and this helped to push the pair up intoday’s Asian session. The currency pairsoared to the 104.90 area.
Ichimoku indicator.Thus, the situation at H4 has leveled off infavor of thebulls.Alllines of the indicator set for further growth. Positive Cloud and Golden Cross, obviously, will heat up the interest of the buyers. At the same time, it’s necessary to draw a substantial amount of critical levels in the range of 104.85/105.15, which may drag the pair into the sideways range.
On H1 the Ichimoku Cloudhas switched to the bullish mode,and this supported the positive sentiment. But here Chinkou Span went into the overbought zone. Therefore, given the levels mentioned above, we can assume ashort-term correction to 104.55 from the current levels.
Technical levels: Support -104.55, 104.20; resistance-104.85, 105.00, 105.15.
1. Sell - 104.90 / 105.00;SL - 105.20;TP1 - 104.55.