4Н

General situation:
Analyzing the USD/JPY rate on the market on June 7, we can see that in the course of yesterday’s deals the rate has slightly edged, having overcome the Ichimoku Cloud. The movement is almost without pullbacks, clearly pointing at the correction. The current signal for Buy-deals is confirmed and strong, as the Chinkou Span is located above the price chart and the price holds above the Ichimoku Cloud. That is why the target for ascending movement is seen at the second support level 80.53. It is necessary to follow very carefully the MACD indicator, as the downside correction is expected. In case this level is passed through, the next target will be seen at the third resistance level 81.34. The ascending movement remains relevant as long as the price is located higher than the Kijun-Sen line (78.55). Stop Loss is recommended while bullish trade. The signal for Buy-deals will weaken in case the price is fixed below this line. Chinkou Span is located above the price chart confirming the current signal for Buy-deals and indicating the bullish mood at the USD/JPY market. Bollinger Bands indicate the continuation of the upward movement, lines are expanding and directed upwards, so long positions are relevant. MACD is directed upwards indicating the current upside movement enabling to consider short positions. If the indicator reverses to the downside, this will indicate the beginning of the correction.

Trading recommendations:
On the USD/JPY market t is recommended to consider buy positions with first target seen at the 80.53. In case this level has been overcome, buy deals can be continued with 81.34 as target. Stop Loss is to be placed below 78.55 and as this line goes higher, Stop loss can be replaced after it. It is recommended to reduce manually long positions when the MACD reverses to the downside. When the price passes 30-40 pips to the required side, Stop Loss can be placed to the non-loss area. Take profits can be set approximately at 80.40 and 81.25 levels.

Apart from the technical picture it is necessary to consider the fundamental data and the time of its release.
In case front-running deals are possible, you can take a smaller timeframe (M15-M30) and follow the reversal of the trend indicator (Heiken-Ashi, for example) near the price level where the price reversal will probably tak place.

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.

If you like this article, vote for the author in Analyst of the Year Contest.
My Blog with additional information to the analysis.