Published On: Mon, Feb 27th, 2017

GBP/JPY: Ichimoku clouds

InstaForex

Let’s look at the four-hour chart. Tenkan-sen line is above 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 (138.90). The closest resistance level is Tenkan-sen line (140.35). On the daily 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 is crossing the price chart from above, current cloud has reversed from ascending to descending. The instrument has entered the cloud. The closest support level is the lower border of the cloud (137.50). The closest resistance level is the lower border of the cloud (140.85).
On the four-hour chart the instrument has broken down the cloud, forming a strong signal to sell. On the daily chart the instrument is trading within the cloud. It is not recommended to open positions at current price. Pending orders should be placed at the cloud’s borders: sell at the level of 137.50, with Take Profit at 135.55 and Stop Loss at 140.85; buy at the level of 140.85, with Take Profit at 143.20 and Stop Loss at 137.50.
Forex Analysis

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