EUR/JPY: Ichimoku clouds 17 December 2018, 20:37

EUR/JPY: Ichimoku clouds

17 December 2018, 20:37

Scenario
Timeframe	Weekly
Recommendation	SELL
Entry Point	127.98
Take Profit	127.66
Stop Loss	128.38
Key Levels	127.70, 128.30

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 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 (127.70). The closest resistance level is Tenkan-sen line (128.30).



On the daily chart Tenkan-sen line is crossing Kijun-sen from below, 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 (127.66). The closest resistance level is Kijun-sen line (128.38).

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 Take Profit at the level of previous minimum of Chikou Span line (127.66) and Stop Loss at the level of Kijun-sen line (128.38).