USD/JPY: Ichimoku analysis (Dec. 6)
Daily. US dollar jumped to 103.40 against the Japanese yen. Then the buyers started disposing of assets as the greenback approached 2013 highs and became overbought. The pair finally started correcting. By the end of the week it was trading below the weakest line of the indicator – Tenkan-sen (TS) in the 102.00 area. USD/JPY made dip lower, to Kijun.
Chart. Daily USD/JPY
H4. At H4 chart the trend turned down. Here Tenkan and Kijun formed the Dead Cross (C), while Chinkou Span went under the price chart. Note that after a brief consolidation above the upper boundary of the Cloud in support area of 101.80/85, the pair still fell inside the Cloud. This means that the correction may take time. The next most important support levels are at 101.50 and 100.50.
Chart. H4 USD/JPY
Tatyana Norkina, FBS analyst