EUR/JPY: Ichimoku clouds 23 May 2018, 08:13

EUR/JPY: Ichimoku clouds

23 May 2018, 08:13

Scenario
Timeframe	Weekly
Recommendation	SELL
Entry Point	129.95
Take Profit	129.60
Stop Loss	130.30
Key Levels	129.40, 130.40

Let's look at the four-hour chart. Tenkan-sen and Kijun-sen lines have merged, the lines are horizontal . Confirmative line Chikou Span has crossed the price chart from above, current cloud is ascending. The instrument has broken down the cloud and slowed down its fall. One of the previous minimums of Chikou Span line is expected to be a support level (129.60). The closest resistance level is the upper border of the cloud (130.30).



On the daily 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 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 (129.40). The closest resistance level is Tenkan-sen line (130.40).

On the four-hour chart we've got a signal of trend reversal from ascending to descending. On the daily chart the Bearish trend is still strong. It is recommended to open short positions at current price with the target at the level of previous minimum of Chikou Span line (129.60) and Stop Loss at the lower border of the cloud (130.30).