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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.
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.
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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