EUR/JPY: Ichimoku clouds



Let's look at the four-hour chart. Tenkan-sen line is above Kijun-sen, the lines are horizontal . Confirmative line Chikou Span is crossing the price chart from below, current cloud is descending. The instrument is trading below Tenkan-sen and Kijun-sen lines; the Bearish trend is still strong. One of the previous minimums of Chikou Span line is expected to be a support level (117.16). The closest resistance level is Kijun-sen line (117.51).




On the daily chart Tenkan-sen line is below Kijun-sen, the blue line is directed upwards, while the red one remains horizontal. Confirmative line Chikou Span has crossed the price chart from below, current cloud is descending. The instrument is trading below Tenkan-sen and Kijun-sen lines; the Bearish trend is still strong. One of the previous minimums of Chikou Span line is expected to be a support level (117.16). The closest resistance level is Kijun-sen line (117.92).


On the both charts the instrument is still falling. It is recommended to open short positions at current price with Take Profit at the level of previous minimum of Chikou Span line (117.16) and Stop Loss at the level of Kijun-sen line (117.51).

Scenario

  • Timeframe

    Intraday

  • Recommendation

    SELL

  • Entry Point

    117.44

  • Take Profit

    117.16

  • Stop Loss

    117.51

  • Key Levels

    117.16, 117.51, 117.92