The Ichimoku Kinko Hyo is one of those indicators you should have at least an understanding of because of its originality compared to Western technical indicators. It is advisable to use this tool in the long-term on daily and weekly charts, where it best displays a panoramic view of what is happening with a certain currency pair.
One great thing about the Ichimoku Clouds, for instance, is that it doesn't need any filters as it has them already incorporated.
Another of its particularities is the clouds formed by the two moving averages projected 26 periods ahead in time: the Senkou Span A and Senkou Span B. This is a unique feature which most indicators don't have, the fact that they appear on the right side of the chart always several periods ahead of price. The clouds work as excellent dynamic support and resistance levels, especially in Yen pairs. The reason for this is understandable since the origin of the indicator is Japanese.
A third singularity of the indicator is the Chikou Span, a line which tracks the price movement 26 time periods back on the chart, providing – together with the clouds - a lecture on how current price action will act in reaction to its recent memory. That's awesome, isn't it?
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REPORT: Understanding and Using Ichimoku - Littlefish FX
REPORT: Currency Trading with Ichimoku Kinkou-Hyo - The Forex Journal
VIDEO: An introduction to Ichimoku Cloud Charting - Nicole Elliott, CFTe
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Editors’ Picks
EUR/USD drops to daily lows near 1.1630
EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.
GBP/USD trims gains, recedes toward 1.3320
GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.
Japanese Yen refreshes three-week high vs USD; seems poised to appreciate further
The Japanese Yen retains bullish bias as BoJ rate hike bets offset dismal Household Spending data. Dovish Fed expectations fail to assist the USD in attracting buyers and keep a lid on the USD/JPY pair. Traders keenly await the US PCE Price Index for Fed rate-cut cues and a fresh directional impetus.
Editors’ Picks
EUR/USD drops to daily lows near 1.1630
EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.
GBP/USD trims gains, recedes toward 1.3320
GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.
Gold makes a U-turn, back to $4,200
Gold is now losing the grip and receding to the key $4,200 region per troy ounce following some signs of life in the Greenback and a marked bounce in US Treasury yields across the board. The positive outlook for the precious metal, however, remains underpinned by steady bets for extra easing by the Fed.
Crypto Today: Bitcoin, Ethereum, XRP pare gains despite increasing hopes of upcoming Fed rate cut
Bitcoin is steadying above $91,000 at the time of writing on Friday. Ethereum remains above $3,100, reflecting positive sentiment ahead of the Federal Reserve's (Fed) monetary policy meeting on December 10.
Week ahead – Rate cut or market shock? The Fed decides
Fed rate cut widely expected; dot plot and overall meeting rhetoric also matter. Risk appetite is supported by Fed rate cut expectations; cryptos show signs of life. RBA, BoC and SNB also meet; chances of surprises are relatively low.
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