USD/JPY: Ichimoku analysis
Daily. Last week the dollar/yen corrected into a channel, formed by the daily Tenkan and Kijun. According to the Ichimoku theory, it mens that the market is in a neutral corrective phase. Support was provided by the Kijun-Sen (KS) and the upper border of the cloud in the 98.30-98.50 range. Note that the main trend is rising: Senkou Span A is directed upwards. Kijun-Sen (KS) is also moving up, and Chinkou span is getting out from the overbought area. Therefore, we can assume that in the near future bulls will try to get out of said channel and gain a foothold above the Tenkan-Sen (TS). This will enable the market to continue recovery and rise above the recent highs at 100.60.
Chart. Daily USD/JPY
H4. There is an interesting picture on the H4 chart. On Monday USD/JPY has twice bounced from the bottom of the Ichimoku cloud and recovered to the levels of the Kijun line (KS). It is clear that this growth can be continued towards the upper boundary of the cloud, as Chinkou span is already out of the oversold area. Therefore, in the near future the bulls may target 99.80. Move higher, as already noted above, could open the way to the previous week highs (100.60).
Chart. H4 USD/JPY
Tatiana Norkina for FX Bazooka