4H

General picture:
Analyzing the USD/JPY rate we can see that on Friday it was fixed below the Kijun-Sen resulting in formation of the Dead Cross, so short positions are relevant. The current signal for Sell-deals is confirmed and strong, as the Chinkou Span is located below the price chart and the price is fixed below the Ichimoku Cloud. That is the reason why targets for possible downside movement are seen at the first support level 79.45. In case it has been passed through, the second support level 79.06 will be considered as the next objective. The downward movement remains relevant as long as the price is located below the Kijun-Sen line (80.10). Stop Loss is to be placed above this line while bearish trade. In case the price is fixed above this line, the signal for Sell-deals will weaken. Chinkou Span is below the price chart, confirming the current signal for Sell-deals and indicates the bearish mood on the USD/JPY market. Bollinger Bands pints at possible beginning of the descending movement; lines are slightly expanding and directed downwards, so short positions are preferable. MACD is directed downwards, indicating the current downside movement that is why short positions are to be opened and supported until the correction begins. The MACD will provide signal of this event.

Trading recommendations:
On the USD/JPY market it is recommended to consider Sell-positions with the point 79.46 considered as the first target. In case this target has been passed through, the bearish trade will be possible with objective seen at the 79.06 level. Stop Loss is to be placed above the 80.10 and as this line goes down, Stop loss can be placed downwards. You can reduce sellers orders manually when the MACD reversed to upside. When the price passes 30-50 pips to the required side, Stop Loss can be placed after it. Take profits are to be placed approximately at levels 79.50 and 79.10.

Apart from the technical picture it is necessary to consider the fundamental data and the time of its release.

Explanations to the picture:
Ichimoku Indicator:
Tenkan-Sen – red line
Kijun-Sen – blue line
Senkou Span A – light brown dotted line
Senkou Span B – light blue dotted line
Chinkou Span – green line
Senkou Span B – violet dotted line
Bollinger Bands:
3 yellow lines
MACD Indicator:
Red line and the histogram with white bars in the indicators window.

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