USD/JPY: Ichimoku analysis
Daily. There is an untypical situation on the dollar/yen market. Last week we expected the price to continue growth (fix above Tenkan-sen was a buying signal, actually). However, yen edged higher, taking the pair into the 97.80 area (bottom of the daily Cloud). The market doesn’t look so optimistic anymore: on Wednesday the bears are testing the levels below the Kijun support (98.70). Fix below this line will negate the bullish prospects for an uncertain period of time.
Chart. Daily USD/JPY
H4. It is not so easy for the bears to resume the uptrend – the upper boundary of the H4 bearish cloud is a strong resistance for now. On the other hand, the lower boundary is acting as a support. We concede that a fix around 98.50/60 can trigger a sharp appreciation of the pair. Fix below this area could open the way to 97.50.
Chart. H4 USD/JPY
Tatiana Norkina for FX Bazooka