FX.co ★ Ichimoku cloud indicator analysis of USDJPY for August 18th, 2020.

Using the Ichimoku cloud indicator we have a new bearish signal for USDJPY in the Daily chart. Trend remains bearish as price is still below the Daily Kumo (cloud) but today's break below the tenkan-sen and kijun-sen provides even more confirmation of the bearish scenario.

Price is below the Kumo (cloud). This is bearish. Price got rejected near cloud resistance, confirming key resistance is at 107-107.50 area. The Chikou span (black line) indicator is below the candlestick formation and got rejected at 107. This is bearish. As long as the Chikou span is below the candlestick formation the bearish trend remains strong. Price is breaking today below the kijun-sen (yellow line indicator). This is the latest bearish signal and a strong one combined with all the above conditions. Where can we expect price to go next? The recent low just above 104 will be surely be tested and most probably we will see lower levels.