Looking at the EUR vs JPY on the daily time frame we see the daily candle barely pierce the bottom of the Kumo Cloud. Once the candle closes below the Kumo this represents a bearish
bias. Therefore with Ichimoku
rules we have all signs bearish
except our Kumo future is still bearish
and price is not outside of the Kumo. I believe we will see price close below the Kumo but possibly retrace back up to the Kumo flat bottom. What leads to this is knowing the market is out of equilibrium since price is some 390 pips away from the Kijun. When price travels too far away from the Kijun it is pulled back like a magnet so the market can become more in equilibrium. Right now we are slightly oversold so that leads me to look to the pullback. Our Tenkan and Kijun have crossed above the Kumo and Chikou Span is below price. Once price and Chikou clear the Kumo we could see some serious downside. The Monthly Kijun represents a 50% retracement
of the previous bullish
move from last July at about 94.049 till the high of 133.947 last month. This is where we get our target at the Monthly Kijun. Happy trading and God bless!