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 bounces toward 1.1750 as US Dollar loses strength
EUR/USD returned to the 1.1750 price zone in the American session on Friday, despite falling Wall Street, which indicates risk aversion. Trading conditions remain thin following the New Year holiday and ahead of the weekend, with the focus shifting to US employment and European data scheduled for next week.
GBP/USD nears 1.3500, holds within familiar levels
After testing 1.3400 on the last day of 2025, GBP/USD managed to stage a rebound. Nevertheless, the pair finds it difficult to gather momentum and trades with modest intraday gains at around 1.3490 as market participants remain in holiday mood.
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The USD/JPY pair trades in positive territory for the fourth consecutive day around 157.00 during the early European session on Friday. The cautious pace of the Bank of Japan’s (BoJ) monetary tightening weighs on the Japanese Yen (JPY) against the Greenback. Traders will take more cues from the US Nonfarm Payrolls (NFP) report for December, which is due next week.
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