GBP/JPY: Ichimoku clouds
Let's look at the four-hour chart. Tenkan-sen line is below Kijun-sen, the red line is directed downwards, while the blue one remains horizontal. Confirmative line Chikou Span is below the price chart, current cloud is descending. The instrument is trading between Tenkan-sen and Kijun-sen lines. One of the previous minimums of Chikou Span line is expected to be a support level (141.79). The closest resistance level is Kijun-sen line (142.93).
On the daily chart Tenkan-sen line is above Kijun-sen, the lines are horizontal . Confirmative line Chikou Span is approaching the price chart from below, current cloud is ascending. The instrument has entered the cloud. Borders of the cloud serve as the closest support (141.22) and resistance (144.10) levels
On the four-hour chart we can see a correction of the downward movement. On the daily chart the instrument is trading within the cloud. It is recommended to open short positions at current price with Take Profit at the level of previous minimum of Chikou Span line (141.79) and Stop Loss at the level of Kijun-sen line (142.93).
141.22, 141.79, 142.93, 144.10