USD/JPY: Technical Analysis: Daily Ichimoku Cloud long-entry set-up in development; target 113.60/114.20

USD/JPY is at a crossroads on a techncial outlook - So far, unable to find commitments from the bulls to get over the 112 line.
However, while holding above 111.20/50, the outlook remains bullish.
The daily Ichimoku Cloud is not quite meeting the full criteria for a long with a sustained upside projection target.

Ross J Burland FXStreet

The four criteria should be as follows:

Price must close above the Cloud.
Cloud ahead must be bullish (green).
Conversion Line is greater than the baseline.
Lagging Span is greater than or crosses above the cloud.

The Lagging Span is not above the cloud, (thick green price line in the chart below targetting the space where the eclipse has been drawn above the cloud).
A break of 112.20 would be a low-risk long entry point if Lagging Span is above the cloud, (through the eclipse completing the criteria for a sustained trailing stop long entry position with calculated risk and subsequent initial placement of the stop), targetting a break of the 112.52 horizontal 78.6% Fibo resistance line.
Target break of 113.60 trend line resistance for 114.20.
Failure at the 61.8% Fibo and channel support opens risk back to 109.50 cloud support.

USD/JPY Daily Chart

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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