USD/JPY: Ichimoku analysis (Nov. 29)
Daily. Although the pair’s strongly overbought, it keeps recovering. Last week the bulls were able to overcome all important resistance levels: 101.30, 102.00 and 102.30. US dollar is currently trading at 6-month highs in the 102.50 area. Ichimoku indicator looks optimistic – all lines of the Indicator go up, there’s a Golden Cross in place and the Cloud itself is bullish. However, the line Chinkou Span is in the overbought area and this may alert new buyers. The pair may very soon correct down to Tenkan-sen.
Chart. Daily USD/JPY
H4. At H4 there’s some opportunity to continue the uptrend. Here Chinkou Span has just entered the overbought zone. The indicator itself is fully on the side of the bulls: Tenkan-sen and Kijun-sen renewed the Golden Cross (C), and Senkou Span A and Senkou Span B are directed upward. Therefore, it’s possible that in the near future the bulls will continue rising to May 2013 highs in the 103.50/70 area.
Chart. H4 USD/JPY
Tatyana Norkina, FBS analyst