EUR/JPY: Ichimoku clouds 08 May 2018, 08:17

EUR/JPY: Ichimoku clouds

08 May 2018, 08:17

Scenario
Timeframe	Intraday
Recommendation	SELL
Entry Point	129.93
Take Profit	128.90
Stop Loss	130.53
Key Levels	128.90, 129.30, 129.90, 130.17, 130.50.

Let's look at the four-hour chart. Tenkan-sen line is below Kijun-sen, the lines are horizontal . Confirmative line Chikou Span is below the price chart, 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 (129.76). The closest resistance level is Tenkan-sen line (130.17).



Let's look at the four-hour chart. Tenkan-sen line has crossed Kijun-sen from above, the red line is directed downwards, while the blue one remains horizontal. Confirmative line Chikou Span has crossed the price chart from above, current cloud is going to reverse from ascending to 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 (129.32). One of the previous maximums of Chikou Span line is expected to be a resistance level (131.19).

On the both charts the instrument is still falling. It is recommended to open short positions at current price with the target at the level of previous minimum of Chikou Span line (128.90) and Stop Loss at the lower border of the cloud (130.53).