H4
General situation:
Analyzing the JPY exchange rate on Forex for January 23 we can say that the currency pair growth indicates the exit of the price from the sideways channel and apparently the beginning of a new trend. The current signal for BUY-deals is confirmed and strong as the Chinkou Span took the position higher than the price chart and the price has overcome the Ichimoku Cloud. That is why the target for the ascending movement is the first resistance level 77. 37. In case it is passed by the traders the second resistance level 77.72 will be considered as a target. The ascending movement remains the same as long as the price is higher than the Kijun-Sen line (76. 90). In case the price is located lower than this line the further elaboration of the signal will be questioned. This will be a signal to the possible downturn of the price. The Chinkou Span is located higher than the price chart indicating the current signal for BUY-deals and bullish tendency of the market participants with USD/JPY operations. The Bollinger Bands indicate the beginning of an upward movement as the Bands are expanding and directed upwards. That is why it is recommended to consider buy-orders. MACD is directed downwards showing the current downward movement. It means that at the moment you cannot enter the market with long deals but in case the histogram and the Signal line are crossed it will be possible to resume the upward movement.
Trading recommendations:
It is recommended to consider yen buy-positions with the first target at the level 77. 37. If the movement is strong enough to overcome this level then the next target will be 77. 72. Stop loss can be located lower than 76. 90. Having passed 30-40 pips of the prices in the needed direction, stop loss can be transferred into breakeven area. It is possible to open the long positions in case the MACD is turned to an ascending movement. Take profit orders can be installed approximately at levels 77.33 and 77. 65.
Apart from the technical picture it is necessary to take into account the fundamental data and the time of its release:
Explanations to the picture:
Ichimoku Indicator:
Tenkan-Sen – red line
Kijun-Sen – blue line
Senkou Span A – light brown dotted line
Chinkou-Span B – violet dotted line
Bollinger Bands Indicator
3 yellow lines
MACD Indicator
Red line and the histogram with white bars in the indicator window.