USDJPY technical analysis and trading recommendations for Jan 11

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USDJPY

According to the analysis of the yen on Forex market, the upside correction might become a trend movement; the sell signal is being observed, however in the nearest time the price might enter the Ichimoku Cloud. The signal is strong and not confirmed, since the Chinkou Span fixated above the price graph and the price is below the Ichimoku cloud. At the moment the first target of the downside movement is 76.59 – the first support level. If this level is passed the second target will be the second support level at 76.23. Downside movement remains while the price is below the Kijun-sen (77.00). The Chinkou Span is above the price graph, which does not confirm the buy signal and indicates bearish sentiment. The Bollinger bands show the continuing upside movement, the lines diverging and directed up, which denotes possible upside trend movement, contradicting with Ichimoku. The MACD is ascending, which indicates current correction against the sell signal, therefore it is recommended to enter the market below the 76.59 level.

Trading recommendations:

Currently it is recommended to wait until the price passes 76.59 and consider selling with target at 76.23. Stop Loss should be placed above 77.00. When opening short positions the MACD must show downside movement. Take profit should be placed at 76.25 and moved to non-loss zone after the price moves 30-40 pips.

In addition to technical image, one should take into account the fundamental data and the time of their release.

Chart annotation:

Ichimoku indicator:

Tenkan-sen — red line

Kijun-Sen — blue line

Senkou Span A — light brown stipple line

Senkou Span B — light purple stipple line

Chinkou Span — green line

Bollinger Bands indicator:

3 yellow lines

MACD indicator:

The red line and the histogram with white bars in the indicators window