EUR/JPY: Ichimoku clouds 29 January 2019, 08:10

EUR/JPY: Ichimoku clouds

29 January 2019, 08:10

Scenario
Timeframe	Weekly
Recommendation	BUY
Entry Point	124.90
Take Profit	125.20
Stop Loss	124.55
Key Levels	124.55, 124.93, 127.12

Let's look at the four-hour chart. Tenkan-sen line is above Kijun-sen, the red line is directed downwards, while the blue one remains horizontal. Confirmative line Chikou Span is above the price chart, current cloud is ascending. The instrument is trading between Tenkan-sen and Kijun-sen lines. The closest support level is Kijun-sen line (124.55). The closest resistance level is Tenkan-sen line (124.93).



On the daily chart Tenkan-sen line is above Kijun-sen, the blue line is directed downwards, while the red one remains horizontal. Confirmative line Chikou Span is below the price chart, current cloud is descending. The instrument has broken through Tenkan-sen and Kijun-sen lines. The closest support level is Tenkan-sen line (124.55). The closest resistance level is the upper border of the cloud (127.12).

On the four-hour chart we can see a correction of the upward movement. On the daily chart we can see the beginning of the trend reversal. It is recommended to open long positions at current price with Take Profit at the level of previous maximum of Chikou Span (125.20) line and Stop Loss at the level of Kijun-sen line (124.55).