USDJPY: Weekly review (16/01)
Tatiana Norkina, FBS analyst
Daily. As we expected, the bears managed to break through support of daily Kijun-sen at 118.60, triggering a connection to trading of new sellers. As a result, by the end of the week the pair was inside the Ichimoku cloud, setting up the market for longer-term corrective fall.
Tenkan and Kijun, formed a dead cross, head down. This gives the opportunity to be on the side of the bears up to lowest level of cloud - 114.00.
Graph. Daily USD/JPY
H4. Fixation of prices in the negative area happened on H4 graph. In the future, this has led to a change in the nature of the trend - cloud turned out bearish. The formation and activity of the dead cross only adds to the bearish sentiment. Therefore, the sale of a currency pair will be renewed after each testing of Tenkan and Kijun.
Graph. H4 USD/JPY