Published On: Tue, Mar 7th, 2017

EUR/JPY: Ichimoku clouds

InstaForex

Let’s look at the four-hour chart. Tenkan-sen line is above Kijun-sen, the blue line is directed upwards, while the red 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 (120.200). The closest resistance level is Tenkan-sen line (120.750). On the daily chart Tenkan-sen line is below 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 going to reverse from ascending to descending. The instrument has entered the cloud. The closest support level is the lower border of the cloud (120.200). The closest resistance level is the lower border of the cloud (122.000).
On the four-hour chart we can see a correction of the upward movement. 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 120.200, with Take Profit at 118.300 and Stop Loss at 122.000; buy at the level of 122.000, with Take Profit at 123.070 and Stop Loss at 120.200.
Forex Analysis

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